Two birds, one stone. Time to face the reality

In my last post, I described how I became the proud owner of 2 investment properties. I followed the recipe and did all the right things to finance them for the long term. Now it was time to spruce them up a bit and get them rented out. I figured I would start out by taking care of the one place that needed the least amount of work since it was already in good shape. 

The place appeared to be fairly turnkey; the walls appeared to be recently painted, the flooring appeared to be clean and fairly new, even the bathrooms didn't need much to get them sparkling clean. So I went to the local hardware store and purchase some mildew cleaner, a tube of bathroom sealant, and a razor. It was really exciting! I sprayed the mildew cleaner around the edge of the tub to get the black mildew out, and if that didn't work, I had the razor ready to just scrape it out and put down a new bead. 

Of course, when the mildew didn't come out, I began to remove the bead from around the tub. After all, how hard could it have been to just put in a new bead? Halfway through the project, I noticed one of the wall tiles was a little loose. I stuck the razor behind it, and it just fell right out of place. The green board behind it was wet and moldy; not a good sign. In fact the adjoining tiles were also loose and they too fell out. Before I knew it, I was literally removing the entire tub surround! What a mess! This bathroom was the original one with the blue (rusting) tub, chiclet tiles, and cheesy vanity, so I decided it was probably due for an update. 

I went back to the local hardware store and purchased a new toilet, floor and wall tiles, cement board for the wall and floor, a new cast iron tub, and an attractive but inexpensive vanity. I also purchased all new plumbing and bathroom fixtures; all for approximately $1,500. 

What have I done? I thought to myself. I have to go to work, help the kids with their homework, and now I have this mess on my hands. My home inspector obviously didn't do a great job of inspecting this place after all. 

I was actually quite lucky to find a reasonably priced contractor who was willing to come in and help me. I thought this was a good sign until I stopped by the next day after work to discover his helper struggling with the drill. Apparently he was trying to drill a hole with the drill set in reverse; suffice it to say that I was not very confident and found myself stopping over daily to monitor the progress... 

In the meantime, I was also going to my other investment property to clean it up in preparation for renting. This one needed quite a bit of work to remove the grease in the kitchen, and remove the floral wallpaper in the living room that made my head spin everytime I walked in.

The time finally came and I was advertising the properties and interviewing prospective tenants. I had no idea that I would attract so many people with pets and poor credit! 

With pressure from my family to get them rented and spend more time at home, I decided to go with my "instincts". 

I took a chance and rented the first place to a nice couple with a little girl who recently graduated from school but had poor credit. They came to the area to begin their careers, and were looking for a fresh start.

The other place, I rented to a group of 3 young professional girls who were living in a neighboring townhouse that was literally crumbling around them. They seemed friendly enough and came by periodically during the renovations to see how the place was coming together. When it was done, they asked me if I was interested in renting it to them for my asking price. How could I refuse?

During their lease, the young family never paid the rent on time, and despite my objections, went through 3 different dogs in one year. Needless to say, I didn't renew their lease at the end of the term, and had to replace the flooring in the powder room and basement where their numerous pets relieved themselves because they were locked inside all day.

The other place didn't turn out very well either. The young ladies apparently liked to hold parties and entertained many different men in their lives. At one point, my neighbors could swear there were 7 or 8 people living at the house. When they moved out, the place was trashed and I inherited a sleeper sofa in the basement, along with a number of other articles of furniture that needed to be disposed.

In my next post, I'll share my experience with these properties over the years; how I rode out the housing bubble, and other exciting adventures.