All Forum Posts by: Michael H.

I'm a former fire adjuster but not in Tennessee. Some states are stated value states to prevent insurance companies from inflating their rates. Meaning if the insurance company deemed the value of the property to be "X" then a they owe "X" when a total loss occurs. I've paid almost a million $ on a property valued at $200,000. Check to see if Tennessee is a stated value state. They also need to deem the structure unrepairable in order for this to apply. Just because there is a lot of smoke doesn't mean it's a total loss. If the roof is gone and walls are charred that maybe a case for total loss. If not deemed a total loss and you need to rebuild just pick the contractor you like and trust the best. There's absolutely no reason not to trust the insurance companies recommendation for a contractor unless you don't like them. They will often work on your side and make it easier to get things done and well. They've been heavily vetted and believe me they want their money too, and they deserve it. If Public Adjusters are legal in your state I would recommend not getting one. They just take your money and the insurance company will likely pay you the same. If the insurance company had to pay you $300k because it's a stated value the PA would get a % for doing nothing. You should also be able to get lost rents until you settle or rebuild within an expected time frame. If your tenants had renters insurance they should be taken care of too. I'm sorry for your loss and your tenants loss. It's never fun to walk up to a scene like that. Best wishes!

David Stone when you say "@Deanna McCormick, if I don't pay my mortgage on time I get hit with an even larger late fee so I'm not sure how $70 for being 7 days late (2 days after Grace period) is too high. We did try working with him and he ensured us he could afford it." The 16th day is late to the mortgage company with no penalty. They have a ton of grace for you and have a lot more at stake to boot. Cut the guy some slack.

I can't imagine not having enough compassion for someone that has rented my house for 3 years to let $70 slide. IMO $70 is crazy high anyway. I agree that's hard core. The dude is unemployed and paying rent on time. If I were the tenant I would have moved out already and left you with the possibility of a less reliable tenant. I agree with the others that say business is also about people. Use compassion to your benefit. your tenants will appreciate you even more. If it was a different kind of tenant it'd be a different story.

Chris Harrington would you be willing to talk with me a little bit to share some of your experience and knowledge? You bring up great points on the price per door. Since he said he was selling based on cap rate, I went down that route instead. If I can get a better understanding of what would be reasonable for him and still make it work for me that would be ideal. PM me if you can talk or even get together. Thanks

Additionally, I don't think rent can go much higher for the neighborhood right now.

Chris Harrington it's in Olathe area. $48k a door isn't bad if it the mechanicals weren't in such bad shape. The units were built in '57 and needs a ton of plumbing drains replaced in each unit. Some are actively leaking and have been for a while, while others are corroded and could start leaking at any time. Furnaces that are just about to fall due to so much rust, water heaters from '83, original fuse boxes are just the start. I can't see paying $730k and then turn around and pay $75k minimum for imminent or immediate repairs. What's the price figured for that per unit? I understand what your saying regarding the price and the fact KC is hot but I can't bank on the fact of future appreciation. I have to count what's coming in now.

I card the gentleman last night and had to leave a vm. He replied in a text stating "it's in a good area of town and since the rents are lower than the newer apartments I have a good selection of tenants and $730,000 is as low as I can go." Seeing his logic helps understand he thinks he's sitting on a gold mine when actually he has a good property that he has done little upkeep of major items. I explained those figures don't work for me based on the cash flow has to consider future work, maintenance, and not counting on having 1 unit a month vacant for only 2 weeks and wished him well in selling it. Thanks for everyone's input. I have learned a lot through the process.

Wade Sikkink you're correct so far. My offer on Wednesday was $476,500 and crickets so far. I'll give him a day or two into next week and check in with him.

Thanks Wade Sikkink I'll be sure to post how it goes.

@Kathy Henley and @Wade Sikkink I couldn't tell if it linked you or not.