Updated about 5 years ago on . Most recent reply
- Accountant
- Los Angeles, CA
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My very first tenant moved out and left me a $4000+ bill
A couple weeks ago my first tenant moved out of one of my properties.
There was trash everywhere, holes in wall, and a trashed car left behind. The first contractor that I got a bid for quoted me $4000+ to clean up everything and turn the property. I laughed in frustration. I could see all of year 1’s cash flow walking out the door and me kicking in my own money to cover the difference.
However, I knew what to do. I got a trusted handyman to see what he can do with the work needed and if he can do it for a fraction. To my luck he did the paint, cleaning, and fill in the holes for $2350. Additionally, I proceeded to keep the tenant’s security deposit to cover some of the damages. So I went from having to pay $4000+ to $1350 to turn the property and get a new tenant in the unit.
Although it is sad to see a single dollar go I’ll take a $1350 over a $4500 expense any day. At least I still get to keep some of the cash flow.
Moral of the story is whether it’s for a turn, rehab, or repair get multiple bids so that you are getting the best price for work needed.
Unfortunately, Biggerpockets won’t let me post video
- Jason Malabute
