The Flip from Hell!!! - Problems with City
I bought an REO, that I was hoping would be completed within 2 weeks after I closed on it. Now, I have found out that the main girder in the home has rotted and needs replacement. - This is not a big deal, just a delay.
In the city I am flipping the home in, has refused to remove garbage from in front of the home, that was 90% greenery. Apparently this city has a city ordinance that they are not allowed to remove garbage unless they deem the home occupied. I am flipping this home, and I remove the contractor garbage at my expense. I had the water, the electric, and the gas turned on in the home, and yes even pay the taxes on the home.
I received a warning that they were going to fine me $300, if I did not remove it within 5 days. I pay for garbage removal in my water bill, in which I asked about garbage when the water was cut on, and I was told that garbage removal was every Wednesday and recycling every other week. Also, bulk garbage removal was every week.
I called public works about the problem. Are you ready for this? They sent the trash police, complete with a badge and wearing a gun!!! He told me I needed to remove the garbage now. I just asked for his supervisors name, and he gave me the number. I called and asked why they did this? They told me that the Code Enforcement Officer was not allowed to carry a gun, the thing about this, the neighbors even committed on it. After my wife contacted the City Manager they did remove the greenery. After this was done, they sent a truck to take away my garbage cans. I told the driver, if he set foot of the property I would have him arrested for trespassing. He called his supervisor, and I called the public works director, and he told me that time, he had taken care of the problem. They did pick up the garbage the next week.
Now lets continue. I closed on this home 2 weeks ago, yesterday.
Today I received a tax bill for deferred taxes on the property for 2012, 2013 that I have to pay before October 20. They have even raised the assessment by $5000. My taxes what they are claiming I owe is $1060.40 for year 2012/2013. I do have and have paid for title insurance, and I am sure that is covered by the policy. I even made it clear in the contract that the taxes are to be paid up to the date until closing date, or that I would be credited with taxes that were not paid until that date. Matter of fact, I think this is covered by state law.
I am not a slumlord. I have replaced the roof with 3D shingles, the windows, wrapped the entire home to make it maintenance free and working on the interior now. This home was built in 1981.
The home is brick and is beautiful on the outside, and will be beautiful on the inside when it is completed. The area the home is in, has one of the highest crime areas in the region.
The homeowners on the street are glad and proud to see this home being flipped the way I am doing it. In any other area the home would be worth at least $150,000. I have a "For Sale by Owner" sign in the front yard, and I will be selling the home for $85,000. I do my best to flip homes in bad areas trying to clean them up. The city I have bought this home in, are doing the best they can so I will not succeed.
When the home is sold, in which I have many interested parties, I will post the name of the city, and ask all investors to tread very carefully before they invest their money into this city. I have flipped many homes and never have had so many problems with a city. Most cities are thankful, but not this one. I doubt very seriously that I will ever buy a property in this city ever again. In my opinion, that this city wants to keep the crime rate high, and keep out investors trying to improve it.
After I post the city's name, I will send a copy of this post to the Mayor's office in this city the local TV stations, and the City Manager. Many investors in my local area will know the city, because they will know the city's reputation simply because of the crime rate.