All Forum Posts by: Nicole Richards

@Devin W.. We had a contract drawn up for Mutual Termination of Lease.  He is expecting a check fro $3000 on the day of his finally walk through in exchange for him giving me the keys.  If he doesn't move we can then follow up with a standard evection process since he signed the Termination Contact. Fingers crossed, so far he has agreed to all the home inspections and appraisal dates.  

It has been really difficult during Covid to sell multifamily here in Oregon. I have a Duplex listed for sale and a tenant who is not paying.  Spent a few hours working with an attorney trying to figure out if we can legally sell the property to a buyer who will Owner Occupy.  Of course the buyers want us to handle removing the tenant. This tenant has paid and already owes over $10k. The attorney was very uncomfortable stating we don't have case precedence for the Cash for Keys during Covid and wasn't sure the contract would hold up in court.  He drafted up a Mutual Termination Contract.  The tenant is getting $10,000 of back rent eliminated and $3,000 cash if he vacates in 35 days.  The tenant was bragging about his new iPhone 12 he bought and $300 shoes.  He has been working this whole time and just not paying.  Our county has decided that tenants dont need to make application to not pay rent....they can just "not pay."  Today he agreed to move out on February 15 which is helpful because he can "not pay" all the way up to June.  He made out well.  I wish all the people who really needed help from Covid relief could get it, but people who want to cheat other people always will!  

@Marlen Weber. Thank you.  It was so nice to have a quick rehab and still have quality finish.  

What was the collateral?  Are you recorded on the deed or any deed secure your funds?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $270,000
Cash invested: $79000

Two Bedroom, two bath, double car garage in a great neighborhood. Home was a time capsule for 1980 but very clean. We just went in and freshened it up with a new kitchen and bathroom, flooring and paint.

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

To date I hadn't held a property locally. My only rentals have been out of state. This was a great below market property and knew in this neighborhood it would rent immediately. Rehab was quick, only 4 to 5 weeks. I was excited to do a property that was so clean and well cared for as opposed to my last flip which was a hoarder house and had caught on fire.

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

I found it from an agent in our Real Estate office.

How did you finance this deal?

Traditional financing.

How did you add value to the deal?

Upgraded the kitchen, bathrooms, flooring, paint, removed a fireplace, took out a half wall in the kitchen, updated with can light and fixtures.

What was the outcome?

Rented on a one year lease. House payment $1150 PITI and Rent is $1850

Lessons learned? Challenges?

It is best to freshen and make the interior current to attract good renters even if the place is super clean. Outdated looks can attract a renter that may not value upkeep.

@Lynnette E.. I had hoped they learned the house was not their house anymore but druggies cannot reason.  The whole situation makes me sick.  When I agreed to this flip, I wanted to experience all the really tough things a flip can bring your way  for the experience and we sure did!  I hope it stops at some point for us and the new buyers.  

@Mindy Jensen thanks Mindy. I was thinking simply because if the history of the house but nothing in the seller disclosures ask specifically directed question that could have indicated this. But you know, people come up with things that aren’t really anyone’s responsibility and claim they were wronged.

@Billy Smith. It sold rather quickly.  The new owners have lived there for 5 months.

Apparently, every time he is taking to jail the police let him out within the hour.  Very sad. 

"My friend" bought a house in disrepair that was a hoarder house, had a fire in the basement, and had a 19 teenager left living in it with his misfit friends. No drugs were made in the home, but lots of needles where found.  The home was cleaned out requiring 6, 40 yards dumpsters totally over $5K.  Then the home was renovated.  During the Reno process the home was broke into several times by the kids.  The police became friends and toured the house often and took pictures as they had spent 12 years working that house and were thrilled to see it restored for the neighborhood.  Once completed, the house was sold to a nice family and they moved in with their kids. It was a wonderful transformation.  

"My friend" just heard that a young prowler broke in the garage in the middle of the night and the homeowner came downstairs with his gun and  got in a fight with the prowler.  The gun went off and a bullet went through the walls of the home luckily missing the children upstairs. Police came and arrested the kid and also took the owners guns which they have kept.

"My friend" feels terrible and wants to reach out but isn't sure if there is any legal ramifications to be concerned about?  This house was a huge project and more than anything a labor of love for the neighborhood.  Now left feeling like the evil continues, and all that hope of saving the neighbors was for not!  But to the main question, should the flipper be worried about any legal action from the buyer?