Learn from my stupid mistake

[Ryan Cleary]

I am currently acquiring my 10th long term rental unit.  I have done live-in flips but right now my whole portfolio consists of long distance rentals.

I consider myself very handy and love doing all the work myself but I live in New York and it is not conducive to the investing that I want to do.  So I do Live-in flips here and long term rentals out of state.

With my flips I walk through every inch of the property, make sure to kick the crap out of it to make sure I know what I’m getting.  I do this three times.  First when seeing it for the first time, second with the inspector and the last time the day before closing.

Now, I have purchased several out of state properties and thought I had a great system in place… until last week.  I had one crucial (possibly fatal) flaw.  Not asking the agent to do a video walk-through the day before closing.

How stupid!  I just got severely burned on my last acquisition from the seller being very sneaky.  Basically, after the inspection he threw a random tenant in the property paying $400 below market rent (it’s a side-by-side duplex, one side paying $1,200 and he decides to put someone else in for $800?)

The tenant never paid rent again and he noticed them destroying the property.  Not only does he not disclose any of this but he happily tells me right after closing.

So anyway, shame on me.  Now I know for the rest of my purchases and the great thing about this business is that I won’t even remember this eviction 6 months from now.

Cheers!