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All Forum Posts by: Supada L.

Supada L. has started 5 posts and replied 146 times.

Post: Getting out of Negative Equity

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134

@Scott E. Thank you for your response.

The home is in a high crime and flood area. Dealing with tenant and the property itself has drained my mental energy so much that I want to get out of business.

Post: Getting out of Negative Equity

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134

Hello,

I have a long-distance rental home that is NOT in a good location and is worth less than my mortgage balance of $60,000. My listing agent suggested two options:

1. Sell it to the investor for a bit below $40,000 cash.
2. List it for $50,000, which, after fees and everything, it would leave me about $40,000 anyway.

I am thinking of listing it for $60,000 and see if it sells. Would this be a good idea? Is there other options I should consider besides home improvement? (The home improvement is another drama I have dealt with.)

Thanks in advance!

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Brian Ploszay:

Sure, it is nice to keep everything in perfect order, but you'll lose out as a landlord fixing this stuff.   A cheaper way would be to break out a few errant sections and do repair concrete work.  And that would not be $5000.  

I tend to do the bigger investments only when I sell a property.  Without enough information, it seems to be a basic rental house with the one car garage port.  

It is a basic rental house and only one car. I'll see if I can find a contractor to repair only the errant sections. Thank you so much.

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Allen McGlashing:

@Supada L. My response to fixing the driveway; that is something that absolutely needs to be done. I would look into asphalt that is usually a cheaper option and lasts. The bigger concern I had with your comment is the PM has turned your cash flow negative due to minor repairs. Are you getting notified when a repair is requested? I also would put in every lease agreement that there is a $100 deposit every time a specialty contractor is called. This makes your tenant think twice about calling and requesting very minor things.

Yes. The PM always notify me when they get a repair request, which I never say no because they are thinks like leak and pipe issue.

Thank you for your suggestion about the deposit. I'll talk to my PM if we can do that next time. 

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Mary M.:

My comment is that gravel may be a cheaper option, but gravel tracks and it will get on shoes etc and will track into the house and get all over the floors.....   I personally would not put in a gravel drive in a urban/suburban rental  just for this reason. 

Thank you. I'll keep that in mind as well. 

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Allen L.:

Demo the driveway and put in gravel, or get a better bid. I did a brand new driveway and sidewalk for about 2.2K, didn't need to demo though but your bid looks very expensive. You need to get 3-4 bids though. The tenant can't complain if it's gravel, and there's no liability, just spend 300 dollars every 7 years putting on more gravel, that's it. 

Thank you. That's a good option. 

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Ramkumar S.:

@Supada L. Won’t your insurance cover this expense ?

Thank you. I haven't asked them, but it's not mentioned in the document I have. I'll call them tomorrow thought. 

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Leonard Brown:

@Supada L.

That's a great point and important to consider when deciding which route to take. High heat will most likely cause it to soften. I'm based in PA and typically do not have to worry about the asphalt tracking. Definitely worth mentioning to your PM if they get quoted for an asphalt driveway.

Thank you! The quote they gave me was for concrete. From googling, asphalt would be half the price. I also used google map to look at the neighborhood. It looks like their driveways are all concrete. Anyway, gotta dig deeper.

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Leonard Brown:

@Supada L.

Since it is a rental property, you should think of the longevity of any work you will have done. With concrete driveways, it's possible for the concrete to shift or sink if the base isn't laid properly. Removing it and replacing with asphalt is a better alternative as replacing the concrete will probably lead to similar repairs over time. Asphalt is more cost-effective and requires less maintenance in the long run.

Thank you for your suggestion. Would asphalt turn sticky in the heat of Mississippi? 

Post: Expensive repair on rental. Should I do it?

Supada L.Posted
  • New to Real Estate
  • Posts 147
  • Votes 134
Originally posted by @Nathan James Smithee:

@Supada L. I used to do residential concrete myself. Mostly driveways and breezeways. $5500 is a good deal. Get a couple more bids, but the cheapest bid with concrete isn't always the cheapest route.

Thank you. I'm looking for other contractors and alternative options as well.