All Forum Posts by: Michael C.

Quote from @Nathan Gesner:

You aren't cut out for being a California Landlord. Find a good REALTOR and follow their advice of either selling fast and easy or going through renovations and then selling. It shouldn't be hard to get a personal loan to cover expenses until it sells.

 I'm not a california landlord(my property is in GA), I actually don't consider myself a landlord at all. Just happen to have a couple investment properties. So you are right. Everybody has their thing.I'm also not cut out to be a bald, overweight, loser who's whole identity revolves around his work either. But you got that covered. Cheers.

Quote from @Todd Jones:

There are a few variables to consider.

You spend 30k and fix up the place. Then what?

Could you rent to another tenant? How is the street (a neighborhood can be great but the street the house is on could be bad). Can you find a decent tenant? If so, I say rent.

Sounds like you did your due diligence on screening. You couldn’t have predicted all of this.

ok, you fix and sell. With the $$$ could you get a house in a much better location AND get cash flow from the rent-mortgage-other expenses?

Recommend looking around to see if the deals are there for a cash flow. But regardless, fix up the place. Once it’s done, it will be a story to tell.

This is a great response. I have been wrestling with all of this since last week.  It's not the most Ideal time to be getting into a different property but I do have significant equity so that helps.  I guess finding  the cash flowing deal is gonne be the make or break of it. The neighborhood is ok but the block definitely has some issues.  If I was rich I would buy them out and the street would be great and 
I would for sure continue to rent it. But it is what it is.

Quote from @Richard F.:

Aloha,

Repair and freshen up cosmetics; sell using 1031; invest in better location; tighten up your screening process AND your processing of delinquent rents.

Sounds like a plan, Mahalo.

Quote from @Scott Mac:

Tiled over the bathtub--WOW....

That kind of behavior makes me wonder what other (hidden) goodies have been done to the place.

Removed the furnace heat exchanger for who knows what reason.

Rewired all of the electrical outlets backwards for the same reason.

That tub thing might just be the tip of the iceberg, and (seriously) maybe there is a (decedent) under there?

Not meaning to be morose but tiling over a tub is very strange behavior.

You might want to pop up into the attic and have a look around too.

Good Luck!

Yes we are giving the whole place a deep inspection. I hope theres no bodies in there haha. They basically did a mosaic tile over the edges of the tub. Super weird.I think the pandemic messed them up mentally.

Quote from @Greg M.:

You're likely to net more if you fix up the place and sell it, rather than sell it in trashed condition. There is a reason why flippers make money buying trashed places. 

So your original tenant was good, but they left and left you with a squatter. Why aren't you going after the original tenant for the damage and lost rent? 

 Original tenant is either in a mental institution or on the street. His mother cosigned though and we are going after her. It's really sad actually the tenant used to be regular and really nice but drugs and mental health wiped him out. His boyfriend was the one squatting.  ( also a crack head)

I doubt I'll get anything but I'm going to try. 

Quote from @Charles Carillo:

@Michael C.

I would say repair and sell. Then buy again in a better area. 

 Right on, this is how I'm leaning

Quote from @Ramzi Nuseibeh:

With the info given, I'd vote for repair and sell. Seems like a better return, and I sure wouldn't hold long term in this neighborhood from what you've said. 

 Yea I don't think I can raise rent enough to recoup the repair cost quickly. The value has gone up but not the rents

I have a SFH that has had a tenant(crackhead) squatting since last june. The marshalls FINALLY came to execute the eviction last week. The house is bad. Trash every where, all appliances destroyed, cabinets destroyed, bathtub tiled over?(really), ETC. Prop mgr thinks 30k at least to bring back to livable.(I'm in california) If you're wondering, original tenant was vetted and great for a couple years, got on drugs and his boyfriend stayed and squatted.

So my question is should I:

A. Repair out of pocket and sell. I would parlay the equity into a nicer place/ neighborhood.

B. Use some kind of financing to repair and if so what is a good option? I would then rent at a higher price. (I can only repair out of pocket if I'm going to sell as I need the money back relatively soon)

C. Don't repair and sell as is. 

I bought in 2017 so I have a lot of equity. In decent condition could probably get low to mid 200k's in current condition probably mid to high 100ks I would say this is a C neighborhood.I save all income from this property so I have some money put up for cap ex stuff but this will burn through that.  I'm not a super rich baller so I can't just pay whatever and let it ride. I'm honestly really mad someone would just destroy my house like this.  It comes with the territory but it's messed up.

So.... Any advice?

I'm happy to answer any questions.

Thanks 

@Brent Bagley

I need to get a tub replaced in a single family. Also have some water damage that needs to be addressed in the sub floor.  Anyone have any good suggestions that can provide references/past work photos?  I have more work I need done as well once I recover from pandemic losses. Really want to find a goto person to be my forever handyman/handyperson. Any suggestions are much appreciated

Thanks