All Forum Posts by: Randy E.

 Define "quickly"

Welcome Edward. I look forward to reading more of your REI adventures!

Congratulations!  I don't know the details, but this sounds like a fantastic deal for you.

-Randy

If you don't have to pay much to get it ready for a new tenant and you can rent the place quickly, I would just move on.  If you stay in this business long enough, you'll have another early skipper who gives short notice.  And another, and possibly another.

Yes, it's annoying, but if you can get someone in by the first of the next month, you shouldn't lose too much money.  You should have his deposit to keep, and since he left the place clean you won't have to spend the deposit fixing the place.  In the end, you come out okay, except for some bad feelings.  

Just be happy he didn't skip early AND leave you with repairs to do and a lot of cleaning.  All in all, this wasn't too bad.

Thanks @Account Closed.  I like the NC market too.  Lots of pigs down here that I have my eye on.  Unfortunately, these days, so do a lot of other investors.  It's getting harder and harder to get these deals.

Wait, does a $15K house even count as a pig?  Maybe it's just a stick in the mud.

Thanks @Ryan Dossey.  I think so, too.  :-)

Thanks @Tom Keith.  I have my fingers crossed that no big problem will come up during repairs.  Because I saved on the front end, I could easily afford something like that, but I'd rather put it into buying the next property.

Thanks @Elizabeth Colegrove .  Those neighborhoods are favorites of mine too.  I also like solid blue collar C+/B- neighborhoods.  With proper screening, those are full of long-term renters who pay their bills and take care of the property.

Thanks @Ryan Potter.  Keep your eye on the prize and keep planning and saving.  Every time someone says "you're lucky to have properties," I silently remind myself that it's 10% luck, but 90% planning/saving/preparation.  

I just paid for my newest rental.  It's in a quickly-improving neighborhood that was a D neighborhood two years ago, is probably solid C now with downtown and near-downtown gentrification moving in from two directions and what I'll generously call "opportunity" properties still on the other direction.  In a year or two, this home will probably be in a solid C+ or B- area.

It's a tidy little 3/1 brick, built in the 60s, that doesn't need much work.  Needs new gutters, facia board work, plumbing check, carpet, appliances, and minor kitchen work.  Oh, and I'll probably have a huge tree taken down in front of the house -- I don't think the insurance company will insure the house with that menace on the property.  Already has vinyl windows.  I have my guys lined up to begin work next week.  Barring bad news with plumbing and electrical, I'm guessing on a $6K budget and about three weeks.

I got a steal of a deal as the home cost only $9K.  I'll be all in at $15K.  The rent should be $750-$825.  If gentrification engulfs this neighborhood as I expect it will, 2017 rents may be in the $1000-$1100 range. 

I could probably sell for $40K today, and $55K after my minor updates.  Gentrification has already taken over the area 3-8 blocks away.  There, this home, once updated as I plan, would probably go for $75K today.  I plan on holding it long term and renting it for decades to come.

Coming into 2015, I hoped to buy one property by spring, and hoped against hope that I could get another around Thanksgiving. Seeing as this one came so cheaply, I've altered my plan. I think I'll get a second in 2-3 months, and try for a third by November. By the end of the year, I could own four properties outright and only be carrying a small loan for the fifth. If I can achieve that, my fifth SFH rental overall, that should set up a very exciting 2016.

Sorry for the long post, but I'm an excited little REI puppy.

I hope to post pictures in the next few days.

Did your contract with him specify a time frame?  If so, and if he has exceeded the allotted time, you should be in the clear if you tell him you're moving on.  Even if it doesn't specify a time frame, I would think (though, I am not a lawyer or giving legal advice) that you could do what I suggested above and write a letter informing him it has already been a long time and you are willing to give him ten days to complete all tasks, or else he forfeits all proceeds and you will hire a replacement plumber.

I had a similar problem with an electrician a couple of years ago.  I had used him before and he did great work.  The only problem was that he was sloooooooooowwwwww --- always giving excuses for why this came up or that came up and he couldn't do much work on a given day/week.  The new job I needed him for had a tight timeline and I told him I needed it turned around very quickly.  He agreed.  Well, nearly a week later and he hadn't hardly started, though he had showed up nearly every day.  Showed up, but presumably didn't stick around long.  So, I hired a new guy, paid the old guy a hundred bucks (maybe two, I can't remember) and told him his work at that project was done.  He was a little shocked to be let go, but that was that.  I saw him later, doing a job beside a house I was checking out for possible purchase, and he had no hard feelings.  Me neither.  I told him I might even give him a call the next time I needed his skills.

You have to stand up.  You're the boss, not him.  It's your money on the line, not his.  Unless it's a HUGE house/job, $6K will get you another plumber quick enough.

He hasn't completed any of the three jobs.  I would send him a letter stating he has X days to complete all jobs and pass the city inspection or he forfeits all proceeds.  If your contract is as you stated ("6k with a plumber to complete 3 tasks") then he is not yet due money because he has not yet completed any of the three tasks.

Honestly, at this point, I'm not sure I would want him to complete the job anyway.  Maybe his work will be of a lesser quality, but you won't know it and pay him anyway.  Then you'll be left with hiring another plumber later to correct his mistakes.