All Forum Posts by: Nic S.

Closing the loop on this. Because the date of the claim was June 1 and I closed on June 3rd, I was absolved from any responsibility. We have since non-renewed the tenant and they left the property in mid-november.  

I grossly underestimated maintenance and make ready costs for my KCMO portfolio. Operating costs are through the roof and net income is non-existent in my first year of business. 

I started with 2 SFH turnkeys which have performed well but then I bought 3 duplexes that are crushing my cash flow. All properties had a 3rd party inspection but between evictions, capex costs, and turnover costs my business will be losing money in 2020.

I think I scaled too quickly. 1 unit total in 2019, 7 more in 2020 for a total of 8 in <12months. I underestimated the amount of reserves I'll need to ensure my portfolio pays for itself. 7 of the 8 properties exceed the 1% rule and appreciation is happening in KCMO. 

I keep telling myself its 'a long game' but it sure feels like I'm doing something wrong. 

I'm on writing this to share my personal experience, these are fantastic lessons I'm learning but it wasn't how I envisioned year 1 going. 

@Takahito Torimoto man that’s sucks, I sorry you’re dealing with this. I have 1 tenant who has been citing Covid but hasn’t gone to the lengths to get a declaration.

We have sent her a letter of non renewal as a way to avoid “eviction” this is in cass county.

I fully intend to get a lawyer involved if it gets to that point but I figured I would see what you all think of this situation. 

My property manager received a letter from a current tenant stating on June 1, 2020 her child was shocked while plugging a cell phone into a wall outlet. Attorney is asking to be put in touch with my insurance carrier and if we don't comply they intend to file a civil suit under a claim of owner negligence. 

The letter states the incident took place on June 1st. I closed on the property June 3rd and had no prior knowledge of any electrical issues. The Warranty Deed has a date of June 1st and a recorded date of June 8th. 

My question is; what event signifies when is legal liability is transferred from seller to buyer? Closing docs or warranty deed? Thank you very much!

@JD Martin closing costs is something I'm going to speak to my lender about. In general how much should someone like me expect to pay in CC? I owe $51K on the house, it was purchased in Jan of this year. 

@James Hamling wow! Being in sales myself I totally appreciate the pitch you outlined above. Thanks again for your input; I'll get started on expanding my commerical network. 

@Jon Schwartz this is why I don’t invest in CA 

@James Hamling thanks for the input. I’ve never done commercial terms but I’m somewhat familiar. In this case, what are you suggesting exactly? A portfolio cash out refi with a commercial lender?

@Bryan Field it’s super annoying Bridge doesn’t factor in those important factors, it’s not like they don’t know better.

@John Teachout makes sense and I totally thought the same thing after I sent the last message. I’ll get with my lender to see if it makes sense.

I bought a house for $70k, it’s worth about $110k now and I’d be looking to pull about $20k cash out to reinvest.