All Forum Posts by: Robert Campbell

Can't evict... Do I call CPS?  Do I call the health department?  Or do I offer to give them their money back if they leave as my lawyer advised? All of the above? 

I have a duplex with a tenant one on side who is living in unhealthy / hazardous conditions (I'll call it UNIT A), I would normally start eviction immediately, but have not because of the moratorium.  I have discussed with my attorney, evictions are rarely going through due to the moratorium, and my best option is to pay them to leave.

- A new tenant moved in next to them (UNIT B) a week ago and started complaining of roaches.

- I called my pest control service, the they came and treated both units, the "messy" tenant showed up to unlock the door for them and left.

- The pest control technician called me from UNIT A, advising that there were unsafe / hazardous living conditions, and proceeded to send photos.  Some of the items he mentioned are:

- - Dead mice scattered throughout the unit

- - Mouse droppings on all surfaces including in kitchen cabinets, counters, stove

- - Trash piles and mounds along walls

- - A large number of live mice in the unit - the tech said he moved a bed that was in the basement, and dozens of mice ran out

- - Fruit flies in every room

- - Dog feces on the floor

Thanks in advance for any advice,

-Rob

@Greg Dickerson - Understood, the spreadsheet came from the potential lender, I did not include the second page:

All:

I appreciate the feedback.  I am quickly learning a lot about these types of financing.  The biggest take away so far is what @Greg Dickerson and @Kenneth Garrett have said about local banks and private money being less expensive.  I have been talked with one Hard Money lender yesterday, I liked the guy and the sound of the company, these are what the terms look like (below).  I will reach out to a couple of local banks today, I don't know any private lenders (yet).  Note the Lender Reserves comes back to me when I sell the property and fullfill the loan, or it can be used to pay the interest only payments of 1598.67 once rehab is complete and it is on the market.

I appreciate the feedback so far and any additional comments are welcome!

@Greg Dickerson

Hello,

I have been investing in the Belleville IL area for about 4 years and have had reasonable success.  I have accumulated 6 rental properties which are generating income, and done about 8 flips that sell in the 75 - 115k area, all cash.

I have my sights on a larger property on Auction.com I think will go for around 120k, would cost max 80k to rehab, and would sell for 300k - This is a bit too large for my 100k cash + 6k rental income business.  Point is, I am trying to understand what type of financing to use - hard money? private money? and which source to use, I filled out a connected investors form and I get phone calls, the terms dont sound very good and its unclear how that would be lined up such that I could pay "cash" at an Auction.com closing.

I wish I had a mentor to guide me on transitioning into using financing so that I don't get a bad deal, but Ill settle for any BP advice folks can give.  Thanks in advance!

Rob Campbell

Keep or Remove Brinks Alarm System in ~95k Flip House: We believe we should remove it while we are paint prepping as it may represent a hassle to potential buyers, but it seems to be a fully functional and not too old Alarm system, that would just need to have the monthly service connected with the Vendor.  I see these all the time in houses we flip and usually remove them, but I wanted to get some outside opinions - keep, or remove?

Thanks in advance,

Rob

@Kenneth Garrett and @Matthew McNeil - I appreciate the feedback.  I think your right Matthew, it just all needs to be painted (except maybe the library).  I did it myself in a couple of rooms on my last flip, but it wasnt almost 2500 sqft of paneling, just a couple of rooms:

I am doing the analysis on this property as a next flip. Its a great house, the plan would be to purchase it for 60k, ARV would be 120 - 130k, it has a pool in decent shape, finished walkout basement with ceramic tile - a lot of nice features and its 2888 sqft.

There are two issues:

1. Bathroom - the only full bath, meaning bathtub, sink, toilet, is upstairs in the office area, downstairs there are two bathrooms, one with a shower, on without.  There may not be much I can do about this, unless the one with the shower has enough room for a tub - going back to measure that.

2. Wood paneling / simulated wood paneling - as seen in the pictures, its everywhere, including a really cool step-down-into library where its wrapped around the whole room with shelving (see picture 3).

In my last flip, we painted wood paneling like this, but it wasn't so much of it.  What would would I do about it here?

- Leave it the way it is and hope for buyers who grew up in the 70's

- Paint all of it - I think it looks tacky, but fresh, when you paint wood paneling

- Remove some, but not all of it - leave library alone

Enough said - please help if you have worked with / around wood paneling to bring a house up to date...  Can you sell a house with a bunch of dark wood paneling for retail price, if everything else is up to date?

@Peter MacKercher - so your just confirming some properties are "worthless" right ?

All - I am a fairly new investor (2 years, 3 flips, 2 wholesale, 2 rentals).  I have bought several properties on Auction.com.  I was looking around on a site I have not used before - Hudson and Marshall, and I came across 2131 Fair St Louis, MO 63107.  I put a minimum $1 bid in just to see how their system works, and what do you know, I won it for 1$, and seller pays closing costs.

Hudson and Marshall called me after and asked if I was sure I wanted this property, stating it probably needs a full tear down / rebuild, and may not be worth as much as it would cost to rehab (and I appreciate the call of course).  I told them I did not expect to actually get it for 1$ and would not have bid again, and withdrew.

My question is - is there something an investor more experienced than I could do with a property like this, or is it truly worthless?  Some kind of Ive seen worthless properties before, its just hard to fathom...

Im about to Quit Claim Deed the two rental properties I have acquired as an aside to my "flipping" activities from my own name, to my LLC. As I fill these forms out it occurs to me - will the Quit Claim from Myself, to my Me-Only LLC, void the Warranty Deed established when I purchased the property?

The purpose of the Quit Claim deeds is to totally isolate the "company" assets for liability reasons, also so that the "company" is something I can sell one day to another investor, or give to my daughter by making her a member.