2008-10-13 Offers rejected
Both properties I went to look at my offer was too low. I'm used to it but I told them both that if they change their minds to contact me. I always like to leave the door open.
The bigger property the seller is asking way to much for it. He's asking about 40% over what i think is FMV for the property. He came down 50k but he still needs to come down another 50k to get to FMV. And FMV doesn't fit into the 2% rule yet. I told him if he gets down to FMV then I'll start to negotiate with him.
The other property, the one that is really run down I'm just going to wait until the codes office puts preasure on him to do some repairs that he doesn't want to do. He doesn't want to put anything into them since he's almost 65, but the borough just passed a no ugly houses ordinance and they are going to make him put new siding on the house which I estimate will run around 20k. The windows should be done at the same time and there's 18 windows in the house too. There is about another 10k of work to be done inside the house but it's not code violations. The second property on the lot should be ok but the third property will need either scrapped and painted or new siding (another 8k) also. I know he won't put that into it so I'm pretty sure that when he gets that call, I'll get a call from him.
Still no heat
My one elderly tenant in the building that is getting the furnaces updated called Saturday night at 8:30 saying she was cold, I told her that I could get a plug-in space heater for her to help take the chill off until the furnaces were ready to go. She didn't think she could pay the extra electric cost for it. My wife got off the phone and I told her that we could knock some of her rent off to pay for the electric since we are supposed to be providing heat anyways. So I called her back and told her I would be over with a heater and we would knock some of her rent off.
So I'm off to get a new heater for this tenant at 9pm on a Saturday night. Thankfully we have really been blessed with warm weather while the furnaces were down. It's supposed to hit 80 here again today which is not typical October weather for our area. Man, did God hear my prayers for warm weather or what, because He sure is delivering it.
This phone call got me to thinking about seeing if she wants to look into section 8. She is still 100 under market rent but with the economy the way it is and her being on a fixed income I don't want to squeeze her anymore. I'm going to ask her if she'd be interested in getting section 8. If she is, I'll contact HUD to see about getting her on section 8, then her out of pocket rent will be less and I will be getting full market value for the apartment and she gets to stay in her home of 30 years with out me taking 60% of her income.
The nailed down the gas company and they are coming out Thursday morning to install the meter and there are 2 short sections of copper pipe to be installed yet for the 2nd furnace that will be hooked up tomorrow. I'll call the inspector tomorrow morning to get him out to inspect Thursday morning then we should be doing startup Thursday afternoon just before a cold front comes in.
Single Moms Housing Project
My wife and I met with our pastor tonight to work on a huge development project that our church is going to be doing to create a housing complex for single moms. I'm going to be on the team working on the project and it's really going to work out great because everyone in town wants us to do it (that's why I was looking for sec 42 info the other week). I am also looking to learn a lot about big development since we will be working with some of the largest developers in our area. My long term plan is to build apartment complexes so this should be quite the learning experience with getting me up to speed on how big development projects go and I'll be helping out our church and our community at the same time.
Thoughts for some additional things to do this week
My agent is pulling together two more apods for me on some other properties and I was thinking this morning about putting in an offer on a property I looked at about a year ago that is still on the market. They haven't dropped the price any but I figure it's been out there long enough and they probably aren't seeing any action on it so they might entertain my offer that fits with the 2% rule.