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All Forum Posts by: Robert Lindsley

Robert Lindsley has started 57 posts and replied 180 times.

Post: Murder/Attempted Suicide in Tenant Unit

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Hi Lynnette,

Before clearing out the contents of the unit I spoke with local police, our attorney, and the families of those involved.  This building is technically a weekly rental, and since they didn't pay rent for the week we were able to wait the required time (3.5 days or 1/2 the rental period) and then proceed.

Both families collected everything they wanted before we cleared the unit.

Thanks for the suggestion to file a lawsuit.  Good idea - we will definitely do that, just in case the person ever has money.  Hopefully this incident won't be a complete loss for us!

Thanks,

Robert.

Post: Murder/Attempted Suicide in Tenant Unit

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Thanks for all the feedback and support!  It’s been really helpful.  It’s been one week today since the incident and we’re finally getting back to normal.

The crime scene company had to get rid of a LOT of the stuff in the unit (14 biohazard containers worth, to be exact) - and that was just for the things that tested positive for ‘bio.’  The cleanup crew said they’ve been doing this for 15 years and it was the worst crime scene they had ever encountered — same thing the police and CSI said.  While I think the cost is high, when I look at the individual breakdown nothing screams at me as excessive — it was a really gruesome scene.

They finally finished up on Wednesday and now we are getting rid of the remaining possessions.  From there we need put an ozone cleaner in the unit, Lysol the remaining drywall and surfaces, seal everything up with BinZ sealant and primer, and begin rehabbing the unit.  Hopefully we’ll be able to re-rent that unit at regular price, but we can lower the price if we need to.

I think we will re-number those units - I checked with the post office and the town and they approved it.  Also I think we may change the name of the complex.  Our building had a reputation for drugs and ‘illicit behavior’ from many years ago so that’s probably a good idea anyway. 

From a business perspective I’m really bothered insurance isn’t covering this at all.  What *does* insurance companies cover these days?!?!?

I’m really sad this happened in my building, but in truth it could have happened anywhere. 

Thanks again for all the great suggestions.  If you have any others, please let me know!

Thanks,

Robert.

Post: Murder/Attempted Suicide in Tenant Unit

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Hello BiggerPockets family,

My wife and I own a multifamily apartment building, and we had a terrible tragedy a couple of days ago.
We await the final police report, but there was an apparent murder/attempted suicide in one of the units.

So far we’ve spent $20k in crime-scene cleanup and they still have another day of work to do.  Insurance has said they’re not covering it because it’s a ‘domestic situation’ which is not covered on the insurance.

We’re speaking with a lawyer tomorrow to determine what to do with their possessions and if there is any recourse with the surviving tenant to recover these costs, but we are doubtful he has money to pay us back. 

We’ve also been the lead story on several local news channels (in a metro area) for the past two days — luckily we’re starting to fall off the news cycle, but there were two trucks out front today taking, and later airing, some rather cruel and unflattering footage as we struggle to clean up the mess.

This building previously had somewhat of a ”reputation,” but we have worked extremely hard for over a year to get that successfully turned around, but this is a huge setback and I’m feeling like all the progress we made on our reputation is ruined. The only upside is our tenants are really going to bat for us on social media (which we are avoiding because of the risk of this mess getting even further out of proportion).

Has anybody been through anything like this? I need to make sure our business can survive -but I don’t know how I’ll be able to rent this unit again given the news and social media pile-on (the news were very specific about the apartment #) and I feel people in general will avoid us now. Any words of advice would be really helpful.

Thanks,

Robert.

Post: What’s included in ‘Net Income’ for Cap Rate analysis?

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Hi there,

Thanks for all the advice! I have built-in the above items into my NOI. It gives me a much better sense of how much my building is worth -- thank you!

I'm going to speak with a commercial broker today to see if I have everything correctly built-in.

Thanks!

Robert.

Post: What’s included in ‘Net Income’ for Cap Rate analysis?

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Hello,

I’m trying to determine a price for a multifamily apartment building I’m selling. The way I’m doing this is taking the net income and determining a possible sales price using the cap rate.

Normally to determine net income I start with the gross income and subtract taxes, insurance, and maintenance. However in this case I pay the electricity for the tenants. Should I also subtract my electrical costs from my gross income to determine net income? What is the common methodology of figuring out net income given I pay electricity?

Thanks!

Robert.

Post: Ethics of disclosing due diligence results?

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Thanks for your thoughts!  I already have one property that's a zoning nightmare - I definitely don't need a second one lol.  It seems like a lot of people play fast and loose with zoning and it ends up hurting the next guy down the line.

I just checked and the property is gone.  I hope whoever bought it can make it work - hopefully this property isn't 'the one that got away.'

Post: Ethics of disclosing due diligence results?

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

Hi there,

I was interested in buying a duplex in a cool beach community in Florida.  The property was being sold through an agent and was purchased by a wholesaler out of probate.

When I did my due diligence, the zoning office informed me the property was zoned SFR and had no license to be a duplex. I informed the agent that I was not going to make an offer because of the zoning issue.

I'm pretty sure that since I told the agent about the zoning issue, he now needs to disclose it to everybody.  My question is, was it ethical for me to inform the agent, or should I just have kept the issue to myself and not told him?

I've been doing this for 3 years, but am always trying to improve and could use your advice to navigate these potentially tricky waters.

Thanks!

Robert.

Post: Looking for loan broker

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

@Jared Rine I'll PM you now.  Thanks!

Post: Looking for loan broker

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

@Diana Muresan Thanks.  I spoke with Capital One through Freddie and they basically told me that a weekly rental would essentially be 'pencils down' as far as proceeding with a loan.  It sounds like that could be a Cap One thing more than a Freddie thing though.

@Omar Melendez Thanks for jumping in.  That would be terrific.  Please PM me and we can set it up!

@Tarik Turner It would be great to talk with you more.  The property is performing really well and the P&L is strong.  Every unit in the building is occupied except for the ones needing extensive renovation.  Please PM me and we can have a quick chat!

Post: Looking for loan broker

Robert Lindsley
Pro Member
Posted
  • Real Estate Investor
  • Orlando, FL
  • Posts 184
  • Votes 48

@Diana Muresan I tried FreddieMac, but it seems as though they have an issue with the weekly rental component. They would want to see all the units with leases. The occupancy is currently at 84% and we are rehabbing units to get that higher. LTV is around 80% but could go higher if needed - I have plenty of equity in the building.

@Ronald Isgate I'll PM you.  Looking forward to chatting!