Rehab goes from ugly to worse

Rehabbing & House Flipping
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Rehab goes from ugly to worse

Minna Reid
Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes

So much for my "cosmetic" rehab. On top of yesterdays issues (cracked joists, leaky roof), after last nights downpour, today we can add leaking basement and flooded yard with serious drainage issues to the mix. Also it seems no venting for the plumbing was ever installed, and of course more cracked joists are surfacing all the time. Rough week. Conveniently at the same time my tenants haven't paid me since Jan and are into it for about $3500, and I'm in my first eviction which is getting uglier all the time btw. But wait - there's more - I've also just lost my cushy corporate 70k/year job and have just a few weeks of salary left before I face life with zero income.
Entertaining suff - eh?
Let's just say I don't sleep so well lately. I got a hot date with Remy Martin in a few to drown my sorrows for the night. Next week I probably face a bud light budget..lol.
But you know what? At the end of the day, I know it's kinda rough for me right now, but somehow I am also absolutely 100% positive that I will come out on top at the end of this whole mess.
So stay tuned...I WILL be spinning a happy ending to this horror story-

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  • Juan Rodriguez
    Culver City, CA · Member since 2008 · 21 posts · 0 votes
    19y

    Wow. wow. wow. Best of luck to you buddy. With a positive attitude and motivation I'm sure you can make a comeback. Best of luck to you buddy...

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  • Account Closed
    Developer · fairfield, CT · Member since 2008 · 18 posts · 2 votes
    19y

    Remy is a cheap date compared to screwing around with Rehab. Geive me a shout, I'm in CT too.
    Mark

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  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    19y

    Sorry to hear about your story. Stay positive and focus on what you can do to get things going again. Life has its ups and downs - you're just in one of the downs.

    Good luck!

    Podcast Guest on Show #100
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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    19y

    Minna,

    I decided a long time ago that the world has fundamentally changed. Just one generation ago, it was possible to start and end your career with the same company. The company would take care of you and provide for a nice retirement. Those days are over.

    In our rapidly changing world, I think the only relatively SAFE job is being self-employed. That way, at least you are in control of your own destiny. While you'll probably have to get another job in the short term, you might want to consider developing a business plan that will allow you to be a full time real estate investor. I did this a little over 3 years ago and have been quite happy with the result.

    Of course, the road is bumpy and has a lot of curves. It will require a LOT of work and a LOT of sleepless nights, but it is worth it in the end. If you commit your time and energy to this goal, you should be able to accomplish it in a few short years. For me, it took 2 1/2 years of VERY HARD WORK.

    Come up with a realistic plan and work like crazy. You can do it!

    Good Luck,

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  • N/A N/A
    Member since 2008 · 11 posts · 1 vote
    19y

    Minnie,

    I am a noobie and just trying to get my feet wet in these forums, but I do have one question. Did you get an inspection done on this property before you purchased it?

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  • Minna Reid
    OP
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    19y

    I certainly did. My inspector found nothing wrong. Next time I think I may be better off inspecting thoroughly myslef.

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  • N/A N/A
    Member since 2008 · 11 posts · 1 vote
    19y

    Ah I see. I was trying to get a feel for how thorough inspectors are.

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  • Ken Hicks
    Boonies, PA · Member since 2008 · 333 posts · 15 votes
    19y

    Minna, your tales are good for this forum. I'm sure others have tales like your but might be to embarrassed to write them. This happens, It is the nature of the beast. Live and learn, never give up and be 100% positive. Best of luck. as far as drainage problems if there is no disclosure your out of luck. If there is a disclosure and if you can find someone that has worked at this property because of drainage problems and it's not on the disclosure you might have a case, but most likely it would cost more to than it's worth to get the old owners to to pay up or resolve the issue. I guess you can threaten legal action but not to go though with it. just to see if they will put in some money for repairs. just my thoughts.

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  • Diedre Bullah
    Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    19y

    OMG Minna,I havent done a flip yet and your story just scared the hell out of me....I'm so glad to see you're still thinking positive.I want to invest in the Philly area....Houses are cheap but they're also very old.....I wish this RE thing was a lot easier...= (...OBTW I'm also in CT :roll: :roll:

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  • Minna Reid
    OP
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    19y

    Bluefish -
    Are you staying in CT and investing in Philly?
    And hey - I'm sure I'm not the only newbie with ridiculous expectations whose taken a nice smackdown their first time around. At the end of the day, next rehab I know exactly what NOT to do. Now there's a subject I know all about...lol.

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  • Jacqueline Walker
    Real Estate Consultant · CA · Member since 2008 · 46 posts · 1 vote
    19y

    With a can-do attitute like yours, I have no doubt you will be successful! This will definitely be a valuable learning experience for you.

    Here's a couple of thoughts.....

    - Did you use a licensed inspector? Does s/he have insurance that you can claim against?
    - Did you purchase a home warranty plan?
    - Did the Seller disclose these problems?

    There may be avenues that you can explore to get some of the other parties that have been involved to help you overcome your challenges.....a 1 hr consultation with a good attorney may be the way to go!

    Good Luck :wink:

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  • Diedre Bullah
    Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    19y

    Minna I live in CT. I'm really not so sure about Philly right now, as a matter of fact I'm not so sure about REI anymore.I've been hearing a lot of negative things and It's scaring me....I really don't have a lot of money to begin with and I really don't want to use hard money..What's a girl to do right? :chicken:

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  • Sean Carty
    Pipersville, PA · Member since 2008 · 7 posts · 0 votes
    19y

    Bluefish, I am currently in Philly. Just wondering were you are finding these cheap houses to flip? All the cheap house I am aware of are in areas you do not want to flip, but to each his own.

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  • Diedre Bullah
    Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    19y

    I found a few houses on stronginvestments.org and also craigs list...but I've been hearing a lot of negative things about Philly. :beer:

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  • Sean Carty
    Pipersville, PA · Member since 2008 · 7 posts · 0 votes
    19y

    I went to stronginvestments web site and yes those are great prices for shells in very bad neighborhoods. I would take the time to visit these areas before listening to hype of a these guys. They might have some good leads but I did not see any.

    Good luck.

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  • Diedre Bullah
    Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    19y

    Thank you so much for the info.It saved me a trip and money...

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  • Minna Reid
    OP
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    19y

    hey bluefish - I'm not sure you really would want to be investing out of state. I wouldnt pay much mind to negativity though - theres too much of that out there. I didnt have much money either to start with so I pulled out a big chunk out of my house. But get this - Sunday I have 3 mortgages to the tune of 5k due, and none provide me income, and I'm unemployed. So yeah it pays to think hard before you jump into anything.Anyway I still have no regrets, imagine that. Either I'm doing the right thing, or I'm a complete fool, take your pick..lol.

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  • Diedre Bullah
    Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    19y

    Minna I envy you for your courage.If I were in your position I would be hiding under a rock right now...I'm going to use you as my motivation...btw you should write a book. :idea: :superman:

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  • N/A N/A
    Member since 2008 · 11 posts · 1 vote
    19y

    Minna,

    How is it coming this week?

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  • Minna Reid
    OP
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    19y

    Almost there...let's say I didn't quite make my 4/1 deadline. I'm sooooo close to done, and my first showing is Friday. Close....but not quite there yet.

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  • Richard Warren
    Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
    19y

    Your earlier posts made this one sound like a real bad one. However, it looks like you're going to pull a rabbit out of the hat! Good going, being only a week or so late is not that bad. I always anticipate projecs taking longer and costing more, that way I usually get pleasant suprises.

    8)

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  • Minna Reid
    OP
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    19y

    Not sure what you mean by that...this thread is pretty old. ...anyway...I am way behind...When I first started on Feb 19, I expected to be done in 3 weeks...not quite eh?

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  • Richard Warren
    Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
    19y

    What I meant was that you were saying that youwere almost done but missed your 4/1 deadline. Today is only 4/4, so if you are almost done that isn't too bad. If you expected to be done in early March, then that's a different story. Either way, keep it going and keep us posted.

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  • Amy Vasquez
    AZ · Member since 2008 · 50 posts · 1 vote
    19y

    keep that positive outlook and you WILL come out on top... just as you said yourself.

    Thank you for sharing!

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  • Anne *
    Real Estate Investor · Las Vegas, NV · Member since 2008 · 120 posts · 1 vote
    19y

    Minna, we're doing our first MAJOR rehab (we had only done "lipstick" projects before). Foolishly, we figured $30k (total pie-in-the-sky number... watched too many TV shows) and 3 months. $75k and 5.5 months later, we're finally a few days away. Fortunately, we bought right and will still come out ahead. FYI, we're the types who don't pick up hammers, which is why our numbers are so high.

    We've just started another property. This one will be $55k and 5 weeks, and just as extensive, if not more. Part of it is finding a new contractor, the other part is the added experience.

    The first one is a huge learning experience. Kudos to you for taking the leap.

    Keep your chin up, best of luck, and keep us posted. :D

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