All Forum Posts by: Mary Erickson

I terminated a tenant a few months ago to renovate the property and I can't get a contractor and so it sits vacant.  Contractors are busy right now.  I'm thinking with everyone out of work now it may be a bad time to sell and a better time to rent.  I'm probably going to just rent my properties out until the market goes back to a sellers market.  It will, it always does.  I'm assuming with people out of work prices may go down for a few months until the economy turns. That would make it a bad time to sell.  Just my opinion, I'm not a realtor. Who knows what will really happen?  

Personally I would wait.  It’s going to be really hard to get rid of tenants right now.  

I ran into a lawsuit over a tenant that wouldn’t vacate.  I will no longer buy property with a tenant in place unless Ive chatted with the tenant and have a written agreement with the tenant.

If the house is that much more than the appraisal I might consider that the house is over priced and that maybe I'm paying too much?  I've found all my appraisals to be generous.  They almost always have come in over the price or at the price I was paying.

Jack, I have lived in homes with foundation issues (I live in Texas now and that's pretty common here) Most buyers would want to probably fix those issues I think.  I'm sure some issues you can put off but real severe foundation issues might need to be handled right away.  I imagine foundation issues   could cause some big problems to the entire structure but I'm not an expert in these issues.  A foundation expert would probably come out and look without charging too much.  I got 3 estimates for free.  

I actually do.  I'm dealing with foundation issues right now.  I have 3 cottages in San Diego for sale and the foundation expert quoted the buyers $100,000.00 to repair.  I had a few other experts tell me that was a low estimate.  So I'm going to just keep the properties as rentals for now, they rent very well and bring in a decent income.   

I can think of a few reasons you would sell a house way under market.... Severe foundation issues,  Prior Meth lab, scene of a homicide or suicide.  I would google the address to see what might be going on.  If you were able to go up to the window you should be able to check out the foundation (not you but an expert).  You did say auction and so they are starting at $15,000 Correct?  that doesn't mean it will sell for $15,000.00 or did I miss something? 

Yes, Coronado Cays in Coronado California

Investment Info:

Industrial commercial investment investment in Dallas.

Purchase price: $1,100,000
Cash invested: $350,000.00

This is a building I purchased for a company I owned. The cash flow is low because I still work out of the building and run a company out of the building. Potential cash flow is $8,066.00 a month with the current tenant agreement that will go into effect 6/15/2020

What made you interested in investing in this type of deal?

I loved the production studios and the building was perfect for my business.

How did you find this deal and how did you negotiate it?

Believe it or not a friend found it on Craigslist the day it went on the market. I bought it after she took me through it on her phone :)

How did you finance this deal?

I put $350,000.00 Down and financed the rest through Chase bank.

How did you add value to the deal?

I kicked out the bad tenants, did some cosmetic upgrades and then marketed the building to the right demographic

What was the outcome?

It's now one of the busiest studios in Dallas Texas. The value of the building alone is now about $1,600,000.00, I put about $100,000.00 into it over the last 4 years. I may put it on the market in a month as I want to move.... I am not sure, I love this building and the production industry. .

Lessons learned? Challenges?

Lesson... Never buy a building with tenants in place, I got sued for kicking a guy out that I didn't know was a tenant. Long story but thank GOD I had business insurance. Second lesson... always have good business insurance. Third Lesson... Never have an agent in the same office as the sellers agent, the agents were both looking out for the seller. In the end I won but it was hell for awhile.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

See above. I can tell you who NOT to work with in Dallas, message me for this info. I won the lawsuit but this selling agent was kept out of it because my insurance company didn't want to spend more going after him even though they could have.

Investment Info:

Single-family residence buy & hold investment in Coronado.

Purchase price: $750,000
Cash invested: $750,000

This is a Coronado home I purchased to rent out and vacation in.

What made you interested in investing in this type of deal?

I love Coronado and I know homes will rent well here. It's quiet, secure and a short walk to the beach. I grew up in the San Diego area and am very familiar with values and rentability.

How did you find this deal and how did you negotiate it?

I actually lived in this house years ago as a tenant and fell in love with the place but had no money at that time. I moved to Texas and a few years after my move asked my realtor to find me a house just like 10 Gingertree because I loved that house and wanted to move back. She was on the look out for that model.

How did you finance this deal?

All Cash I made in a successful business I ran.

How did you add value to the deal?

I paid cash and I think that got me a better deal...I offered a quick close... Once I purchased I fixed it a bit (mostly cosmetic) I staged it with furniture I bought for that house, it's super cute now.

What was the outcome?

It gives me a place to vacation for free and $3,500.00 a month income when I'm not staying there. After all expenses (tax, insurance, HOA etc) I make about $2,000 a month profit.

Lessons learned? Challenges?

Keep in touch with friends, treat people right and they'll keep you in mind when a deal comes up. Always let everyone know exactly what you want.
After telling my realtor in Coronado I wanted a house like 10 Gingertree... One day she called to tell me the Realtor was putting that exact house on the market at 2PM and if I wanted it I needed to come up with a cash offer by 2pm that day to keep it off the MLS. I assumed it would be about $1,100,00.00... when she said $750.00 I jumped.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes I did. I recommend Karen Hust in Coronado, without her I would NOT have this house. She's looking for another one now because I'm ready to buy one more there. She is also selling my 3 cottage property in Normal Heights San Diego....I trust her 100%. Message me if you want her info.