All Forum Posts by: Marc Winter

Several ways to go here if you are not familiar with what to look for: 

if you cannot get a good contractor to go with you, VIDEO the entire house--all rooms, esp kitchens and baths, under all sinks.  Basement including electric service panel, heating system, water heater, meters for all utilities etc.  Exterior--roof, chimney (both as best you can from the ground--unless you have a drone), siding, windows, foundation, stairs, driveway etc.

You will have a record for yourself, and can share with potential contractors for items that need attention.  Also, by doing these recordings, you will force yourself to pay attention to every aspect and detail that might need attention, without really annoying the showing agent by slowing the viewing down too much.

Lastly, go online and look for housing inspection check lists--there are dozens listed there, and then check for your local 'repair costs'.  Many web sites for that. 

And to find a good referral for contractors in your area if you don't already have one, go to the supply houses, ie plumbing, electrical, roofing, etc and ask the guys who work the counter who they would say are the busiest and best.  The best contractors don't often go to Home Depot and Lowes as much as to the supply houses--they know the materials are better quality and usually less expensive than some of the 'second quality' stuff the box stores sell.

Good luck.

1. Negotiate with the seller 2. if that doesn't work for you, chalk this deal up to your education/experience  3. remember as long as you keep looking, you will find other deals and  4. you are now better equipped to find the RIGHT deal for you, so don't be too impatient. 

Try to remember, this is all part of the process.

Good luck!

From my own experience in FL, I can tell you it is FAR better to do a double closing, pay the fees, and walk clean.  By the way, I was a FL licensed RE Broker at that time.

One of my friends at a title company was closing--wholesaler flipping the contract--and the seller was there, figured out what was going on, went out to his car and came back with his Glock.

I have 'wholesaled' houses in FL, but always I closed the contract, and either same day or shortly thereafter, sold at higher price to buyer.  That cost a little profit off the top, but it actually took out a lot of all types of risk.

Maybe try a mixture of some cash now, monthly payments over next 'x' months, note secured w 2nd mortgage/trust deed. If you were able to do an equity line of 80% LTV, that's about $280, or a net 30k to you to give to your partner, plus payments to your partner.

BUT, with all the extra financing and monthly costs to repay banks and partner, does the deal still make sense in respect to cash flow from rent?

No one wants to burn bridges, but everyone in real estate rental/holds knows it's not a 'stock' type commodity, and not all that liquid.  Might take a bit of time.

Good luck.

Question--what was the response from the neighboring landlord? 

The issues your tenant is complaining about are relatively simple fixes:  the 2 am noise--all towns have noise ordinances, but how much noise do these can-crushers cause?  Porch light in bedroom--pull down the shades?  Cutting down your trees or branches--this is not your tenant's yard, it is YOUR yard, and you have a legit complaint. 

Advise your tenant to keep a written journal, with dates, times and 'infractions'.  (IMO, sunglasses at night is not an 'infraction of ordinances.)

Last straw or not, if there is a serious drug issue, tenants must contact the local drug enforcement office of police--can make anonymous complaint if they wish.  Drugs hurt people and hurt property values as well.

Good luck.

Did you try simply asking the owner?  If you are in negotiations for a purchase, it is a relevant fact, imho.

This is just another reason we don't install carpet in a home/apartment unless the owner (if we are managing for them) absolutely insists.  Solid plank vinyl or good quality laminate (in non-moisture environments) is excellent and lasts far longer than carpet, and is able to be repaired.

We find that most tenants appreciate the hypo-allergenic properties of a non-carpeted environment.

Just a thought for the future...

A few questions that need answers from you:  Is the property management company a licensed real estate broker?  Do you have a written, signed management agreement with them? 

Sorry to hear about this problem, but question for you--why did it take seven months for you to take action?  Seems to be more to this story that is being written so far.

Best,

Marc

I agree with @ about the carpeting.  Unless it is a flip/sale, we NEVER install carpeting as a renovation in a rental, unless, of course, we are managing for an owner and they insist on it.  Tenants love the 'hypo-allergenic' flooring--usually solid vinyl planking, although a good quality laminate, properly installed with underlayment/moisture barrier works nicely.  Easy to clean, easy to repair, and tenants take their area rugs (and dirt) with them when they leave.

Suggestion: when you are doing kitchens and baths, try comparing ceramic tiles over vinyl planks.   And never put laminate in wet areas, or areas that tenants will try wet mopping--it just doesn't work out well (read pucker up at the seams). 

Strangely, I have found different results regarding furnished/unfurnished; maybe your area is more transient or differing situation, but in our area, we want a tenant that has furniture and moves in and feels like it's their home.  Other benefits:  harder for them to pick up and move in middle of night;  no questions about 'that stain on the sofa was in when we moved in': no 'accidental theft' of your property when they do vacate, etc.

Oh, one other small but significant and potentially costly item, especially in a multi unit building where you supply the furniture:  Bedbugs.  IF you are supplying the furniture (particularly used furniture), and a bedbug infestation breaks out, you will be (more than likely) on the hook, even if the tenants brought them in.  Most courts would side with the tenant--it's owner's furniture, therefore owner's responsibility.  Eradication of bedbugs is COSTLY, plus you will probably have to lose the furnishings to be safe. 

Additionally, in a multi-unit building, you usually will have to treat all the units at the same time.  That's a big financial OUCH! that will make you laugh at your concerns over carpet vs laminate replacement.  A landlord in NYC just lost a case where the Judge sided with the tenant and awarded a $300,000 (Three Hundred THOUSAND Dollars) judgement tin favor of tenant against the owner for not acting quickly enough to exterminate bedbugs.

BTW, I'd suggest you contract with a licensed pest control person to not only treat your properties/apartments on a regular basis, but also conduct a periodic inspection for ANY type of infestation, especially those pesky bedbugs.  Those lil critters are just plain nasty.

Hopes this helps.

Cosmo,

If you really are unsure, and want to see if this is a REALLY good deal, after you have an assignable contract, try wholesaling it and see the responses you get.  If others are ready to pull the trigger, it should settle your questions (and nerves).  If not much response, maybe it's not the deal you might wish it was.