Adventures of a new landlord errrr, Slumlord...

Adventures of a new landlord errrr, Slumlord...

Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes

Picked up a four-plex for my first hold. It's pretty rough, C neighborhood at best. Two lower units wrecked, one vacant one occupied. Two upper units are perfect with great tenants.

So, tenants in unit 1 are selling drugs.. no doubt about it. Turns out its heroin.

People walk up to the bedroom windows and pickup, so I did a little landscaping on Tuesday. Spoke with a friend for some advice and have a game plan set. Local Sheriff is on board and VERY supportive but they move too slow. The goal is to get them out within a few weeks so I served a sixty day notice to vacate today. Made a little cash for keys offer which would come from their deposit to try and push them out sooner. Things seem to be running smoothly so far. Hoping for within two weeks to have them out. Without the advice of a few very close friends who are long time landlords I'd have been stuck. Make sure you have those mentors lined up!

Removed all cover from the front windows to send a message, one people can see what you are doing and two things are changing at this property now.

Meet my Director of Customer Relations, always nice to deliver a message with a friend backing you up.

Once they are out, we are rehabbing the two lower units. Every neighbor is super nice and clean. They are beyond stoked this place is getting cleaned up. They will be my eyes and ears until I can be on site for a while.

If I've learned one thing on this deal its trust your gut. The ONLY reason I even went near this place after hearing the horror stories was because every house surrounding it had white picket fences. It seemed nice, just this place was the holdout.

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Dawn AnastasiPro Member
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
13y

I now have the best K. Marie Poe quote ever!

See this reply in the discussion

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  • Deborah BurianPro Member
    Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
    13y

    Good for you! You'll have to keep us posted. One of our nicer homes came to us because it had broken windows and spiders. Lots of spiders. Spiders crawling on the walls and rolling in little conjugal clumps and dangling from the ceiling... It was a Freddie REO and two sweet families looked at the same time we did. It was a nice warm day and the spiders were really moving... They barely got into the house and were GONE. The spiders are gone now and the house cash flows like crazy.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Thanks! maybe its just me but I'm learning not to over think things too much.

    I'll keep everyone updated, this is where people skills seriously come into play. Fingers crossed!

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Heroin? Are you sure? Heroin is so eighties, so old school. Practically classy compared to the alternatives. For me, It's ALWAYS meth.

    I thought I was so worldly until I hit the entrenched drug dealers in the CA desert. Seriously. In the beginning, I missed all the signs. If every neighbor who walks over to visit is carrying a purse, that's dealing. If trucks drive onto the lawn, right up to the front steps and the visitor is there less than 60 seconds, that's dealing.

    My only failures to date with cash for keys offers were with dealers. Dealers need a known home business base more than they need your $3-5K. They always agree to move but don't/can't. People without ID and credit cards and driver's licenses don't move. Just sayin'.

    Stay on top of your UD case, in case you need it.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Thanks for the advice! I'm stoked its not meth either. That actually scares me.

    I didn't grow up in the best of areas, or make the best decisions growing up. These guys are what I'd call "Maintaining" dealers. They aren't making money, just selling to allow themselves to have some for themselves.

    Let's put it this way, life will be a lot simpler not living here. Especially when it comes to running their business.

    I'll be all over the Sheriff the whole way as a backup, I think they'll have a reason to visit sooner than they think though.

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    13y

    I think what you are doing is great. You may have allready thought of this, but when the drug apt gets empty, be very careful. In addittion to the heroin, they may have been meth activity. Have a qualified person come and check it for residue as it can be extremely harmful to health of new tenants. You might consider just stripping out drug apt to bare studs as an alternative. Carpet drywall etc can hold lots of bad things especially if anyone cooked meth, but IV users also have high rates of hepatitus, HIV etc, so treat it like toxic waste unless a report tells you otherwise. As to getting them out you might try a real or dummy camera or 2 with a sign that the premises are monitored by local law enforcement. One camera low then another camera too high to reach with remote feeds. Folks will stop coming and the dealer will move. Be very careful, folks using a lot of drugs or drugs for a long time can be very unpredictable and possibly dangerous. Oddly enough heroin addicts do not seem to have as high an incidence of violence while high as meth or cocaine, but be CAREFUL. Get civil standbys or have several friends, preferable civil standbys. Maybe the police or sheriff will even start parking a car in front for a few minutes every day. Good luck

  • Kansas City, MO · Member since 2011 · 43 posts · 3 votes
    13y

    Great story Tim Gordon! Just wondering, are there several multi-unit properties in the area? It looks like a single family house in the background. This looks like the kind of property I would be interested in, just wondering what the neighborhood is like.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Thanks for all the advice everyone. That's why I took my dog today.

    One of the tenants kids has a warrant, he comes and goes. The other was arrested 3/25 for possession. The Sheriff was salivating when I offered 100% support.

    You are right, its a full gut. Already planned for it and I'll look into those extra steps I don't want anyone being in an unsafe area. I already feel terrible for the families upstairs. We're making it right for them.

    Finally my silver lining the 6'5" x PBR rider who is stoked we are turning this place around. We are instant buddies, I wish I'd met him sooner. I feel a million times better knowing he is there to watch and scare away trouble as he has been for the six months he's lived next door.

    As the world turns huh...

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y
    Originally posted by Matthew G.:
    Great story Tim Gordon! Just wondering, are there several multi-unit properties in the area? It looks like a single family house in the background. This looks like the kind of property I would be interested in, just wondering what the neighborhood is like.

    You head south and its multi units, to my left right and behind me its all SFR's with picket fences and nice friendly owners. Down the street one more block its all MF and pretty rough. This block is clean and this is the last standout. Its hood, but that doesn't mean it can't be safe and drug free. Two fantastic tenants upstairs leads me to believe we can do this!

  • Investor · Clarksville, IN · Member since 2012 · 226 posts · 96 votes
    13y

    Why a 60 day notice to vacate?

    If you are able to get the Sheriff to make a case on them and they get hauled off, then what Is the procedure to get them out?

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Until there is an arrest I'm kinda stuck, so it's best to get the wheels in motion on the 60 day.

    I'm new at this so its a learning process. Anyhow the goal is cash for keys (their deposit) so we can get them out in a couple weeks.

    The sheriff explained they need a warrant and that takes a little time. Red tape etc... If I can move them by helping them out and its money that wasn't mine to begin with then great. I got their deposit from the former owner.

    If not, well we have contingencies. I got the advice of a great landlord and former police officer. So far we are doing everything as he would. California is very supportive of tenants, I want to help them out and be nice until its time not to be nice.

  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    13y

    I had problems with a tenant selling crack/coke out of a multi family property I own. I setup some security cameras that I usually use on vacant rehabs targeting both entrances to that unit. They all were gone within a couple days, I guess they didn't like selling drugs on camera. I also always try to work with the narcotics unit of the local PD if I know somebody is selling drugs on one of my properties....but I'm not as patient as they are.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Nice idea Patrick. Apparently they have been known to disable the motion lights on the property. Torn on going wild on lights etc.. due to risk of them being damaged. Maybe even a fake camera as a test to see...

    I really want to light this place up but need thoughts on motion lights that won't get wrecked right away.

  • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
    13y

    A fake camera is worth a shot, I've used this $9 one before and it definitely looks pretty convincing

    www.amazon.com/OUTDOOR-SECURITY-CAMERA-Blinking-Silver/dp/B004D8NZ52/

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    That is awesome, that and a couple signs is worth it just to make people sweat.

    The tenant who is allowing her kid to sell has complained of her car being broken into. I'm just being Mr. Nice guy installing cameras to help prevent that! :)

    Thanks Patrick L.!!!

  • Investor · Clarksville, IN · Member since 2012 · 226 posts · 96 votes
    13y

    In Texas the property owner could just hire an off duty police officer to sit there for a couple of days/nights and amazingly the problem comes to a stop. In California they don't allow freelance police, but most cops are are too willing to make a project of a turd ball when they come to their attention.

    Btw, if you know that the fine young man has a warrant, just wait until you know he is there. Anonymous tips happen. They will come and hook him up, perhaps he will catch a charge for whatever they find while they are there collecting his person to take before the judge.

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Tim Gordon great job! May I offer some unsolicited advice?
    Yes - you're on camera signs right away. Great detourant but don't stop there.

    Get all the grass out off the walkways and don't let one piece of litter sit on the ground. Groom the place - like crazy. This is a very inexpensive deterant that mill slow down drug traffic. They need to see visual signs that your place is transforming.

  • Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    13y

    Cont...
    NNext - after the dealers are gone, there will be a void of sorts. Work hard to connect with neighbors during the void. This is a window of opportunity that you don't want to miss. You will have some credibility after having kicked out the dealers - use your credibility to set the block on an upward spiral. Easiest way to boost your equity by helping your block become more appealing to honorable people.

    See if you can draw neighbors into conversations about never tolerating any type of drug dealing on the block. No co-existing with drugs.

  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    13y

    I now have the best K. Marie Poe quote ever!

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    Have you thought about getting a banner made that you could drape accross the top of the building that says, "The tenants in Unit 1 are drug dealers! Stop dealing drugs in this neighborhood!"

    It might scare the drug buyers away and make this tenant want to move out faster.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y
    Originally posted by Rob K:
    Have you thought about getting a banner made that you could drape accross the top of the building that says, "The tenants in Unit 1 are drug dealers! Stop dealing drugs in this neighborhood!"

    It might scare the drug buyers away and make this tenant want to move out faster.

    It might also bring in more buyers who are looking for a place closer to (or even farther from) home ...

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y
    Originally posted by Rob K:
    Have you thought about getting a banner made that you could drape accross the top of the building that says, "The tenants in Unit 1 are drug dealers! Stop dealing drugs in this neighborhood!"

    It might scare the drug buyers away and make this tenant want to move out faster.

    I was thinking about using the top of the building too. But I was thinking more about getting the upstairs neighbors to shine some kind of light down from all their windows 24/7 for a couple of weeks or so. Light up the front, back and side yards with some kind of flood lights from the interior that can't be disabled by dealers or vandals. Trouble is, IMO, the OP may be overestimating how "clean" the neighbors and surrounding buildings are. Drug dealing is rarely errant behavior in a low income neighborhoods.

    Even if this one unit is the only problem unit, it's hard to get the real cooperation of neighbors if it puts them at risk for being suspected of reporting to or cooperating with the landlord. There's no shortage of white picket fence neighborhoods with serious violent crime issues in So. Cal.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    No banners!

    I'm using honey to catch my flies! I have a supportive neighbor who is cooperating fully, we are both car guys and hit it off instantly.

    I can't wait to have some updates, for now its been quiet but the next few days should prove to be interesting.

    Lights etc.. will go up but not until I'm certain they won't be vandalized and damaged.

    The front yard is getting cleaned up to look nice, send a message that change is here.

  • Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    13y

    this is kinda crazy thinking...but what about a caged sensor light? Also, how about putting lights above each unit window (tell your tenants this is just on a temporary basis to get rid of the riff-raff)?

    I have to commend you for what you're doing. Most see investors as scum; there really is a positive added to the community.

    Case in point, whenever I'm putting up a rental, all the neighbors visit. They see we're working on the curb appeal & converting it to a nice rental. Then they wanna know who is gonna rent here (really hate it when they get racist). A year later, I have no complaints from the neighbors nor comments. I think they're embarrased they were wrong.

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    I'm so stoked on all of this! The neighbor is so cool I just want to buy him a beer but he doesn't drink so steaks will be in order.

    Learning the whole hiring and delegating with landscapers, contractors has been interesting but still enjoying the whole process.

    As the world turns....

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y
    Originally posted by K. Marie Poe:
    Heroin? Are you sure? Heroin is so eighties, so old school. Practically classy compared to the alternatives. For me, It's ALWAYS meth.

    I'm surprised you'd post your drug of choice... ;)LOL

    Here, if a LL can have a case for the reasonable expectation of durg use or dealing, it's an immediate lock out kicked to the curb. But you better have a case.

    Good buy, change the place and bring it up the the neighboring standards ad that equals money! :)

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