All Forum Posts by: Jeff Bridges

 MD offers 20k Grants to pay for the upgraded pre-treatment system for failed systems, but I havent seen any such program in DE. DE does have a low coat loan program for failed septic. 3 or 6% interest loan seems better than selling vehicles and going into poverty. Worth looking into. just subtract the loan payments from cashflow....

replacement septic might take some time to install. Just be sure to be scheduling monthly tank pumping or as needed until the repairs or replacement field is setup to avoid interior overflow since the tank will be filling up much faster than normal.

http://www.dnrec.delaware.gov/fab/Pages/Septic-Reh...

http://www.dnrec.delaware.gov/wr/Information/GWDIn...

We consider returns changing along with location just like bond investors do with bonds of different risk profiles. The lower quality areas are cheaper and might cashflow higher but have a higher risk profile to obtain those cashflow figures. Junk bonds have higher rates of return but also have a higher risk of default. Investors need to see what risk profile is most comfortable to them. Who would your target buyer be if you are a long-term buy and hold investor? It's not flipping so thats's 5-10 year out. Exit price is ARV and we absolutely consider ARV because we need to calculate repairs and see how much equity will be gained from the deal after initial investment relative to the market price. you dont want to buy a 100k deal with 20k in repairs needed that is worth 100k. that would be silly.

you need to review the policy to see What perils are covered as far as freezing pipes. You need to see if that specific peril is included. Second, how long has the unit been vacant. If it was 60 days or less, you may be covered, but the discretion is really up to insurance company since when it becomes vacant, your risks go up and you are expected to get a vacant policy to cover these increased risks (one of which came to reality). If there was no heat on and the pipe burst, the insurer might want to deny coverage because of lack of reasonable care to shut off the water or turn on the heat.

Here is one example clause in a dwelling perils list for example(could be in yours or not):

2. We do not insure, however, for loss:
c. Caused by:

(1) Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to a. Maintain heat in the building; or b. Shut off the water supply and drain systems and appliances of water. (emphasis added)

So if they were to find out there was insufficient heat in the house, the insurer could make a case that the owner wasnt taking reasonable care to heat the house and it being vacant meant that it would take longer to notice such damage that might have been smaller if someone were living there.

below link has more discsussion of examples of when frozen pipes were covered:

https://www.propertyinsurancecoveragelaw.com/2013/...

I dont think insurance will pay for repair to damaged pipe, but they will pay for damage stemming from the damaged pipe. So the plumber bill is not reimbursable, but drywall, paint flooring and all finishes will be covered to allow you to return to original condition.

Citation:   https://www.investopedia.com/ask/answers/111815/do...

Try to consolidate repairs into one invoice if possible for ease of approval with insurance. get a licensed reputable contractor to quote you to replace or repair your cabinets as needed and also do your flooring with like materials and no upgrades. Then you can take that written estimate and share with your adjuster for approval before you commence work. The insurance company will pay prevailing market rates for put-back renovations and you dont need to skimp with an unlicensed handyman since they should fully reimburse you for a fully licensed and experienced contractor. You can get warm and fuzzy by submitting the estimate and not beginning repairs until insurance agrees to the contractor invoice price. You really want contractor who can make quality repairs the fastest and provide detailed invoices for you to provide to insurance. You dont want to drag it out more than necessary and you've already committed to insurance paying for repairs anyway. This is all my opinion having made previous water damage claims.

loss of rent only applies as far as I understand if the house is uninhabitable for months at a time and tenant had a lease but had to move out. You would get paid for that lost rent. this was a short-term hotel stay and tenant returned back home. You should accept the full rent from the tenant and there should be no change to payment cycle. What you negotiate with the tenant for their troubles is up to you and the tenant. Insurance is not obligated to pay out your tenants on your behalf. Some landlord might suggest tenant go through their renters insurance for hotel reimbursement and say its not their fault and they have no responsibility to repay tenant. Others might offer some financial reimbursement for hotel or pro-rate rent for days not spent inside the house, but not both.

You're not going to get reimbursement by insurance on water bill. Share your plumber bill with water company showing a repair was made and see what they can offer to reduce the bill one time. people sometimes get relief from company.

above is amateur opinion only based on anecdotal experience. Good luck! I've been there and its not fun.

start calling up a few contingency collection attorneys in the state of the rental, explain your situation and ask for estimates of their contingency amount. In MD its between 25-33%, so it could be much less than 50% suggested above. They'll do the legwork of collecting the balance from the tenant and you'll get your cut if they are successful. You dont have the means to be local for small claims and 7000 would maybe exceed the small claims amount limits. You get the satisfaction without needing your own the boots on the ground.

I'd ask for vet documentation for proof pet has received all state required vaccines. This will get you the name on the dog on record designating that specific animal as their ESA.

On one hand, you can stop all communications with the tenant and wait for eviction, but it seems like giving them the documentation they need MIGHT help them move faster into a shelter, since they obviously have no other means to move into another property or with other friends. Shelter is housing of last resort before sleeping on the streets. A copy of the judges order appears to be the best documentaiton they need to show the shelter that eviction is imminent. Mailing/emailing that alone to her address seems to be sufficient without having to re-engage with the tenant. 

Dont know what jurisdiction you are in but MD for example has a housing and homeless hotline that gets the resources a tenant might need to find new housing or shelter assistance. Other states likely have a similar hotline so they could get connected to a case worker who could tell them options they were not yet aware of. Not your problem, but saying they could call a housing case worker at 211 or whatever the hotline is might be something helpful to them to allow them to move on.

https://211md.org/211provider-md-housing-homeless

Good luck and keep the eviction date once issued and follow through until the property is vacant. You need to handle your own issues while they handle their own.

 Analyzing what you stated: Lets say you paid $600 annual premium for that rental warranty. Then you paid 100 deductible and discounted 100 for tenant trouble. You just paid $800 for a $750 fridge:) Then you have the pleasure of paying $600 the following year:)  Just some food for thought... What was your actual premium if you dont mind sharing?

I'll second @Patti Robertson remarks. I've tried a couple of reputable warranty companies without success. They send the worst third party contractors, authorize the least amount of repairs, and take an unacceptable amount of time to dispatch folks and make decisions on how a repair/replacement is to be handled, while your tenants are without their appliance what seems like FOREVER. You will regret trying any of them out and wish you had self insured and just taken the $500 per house and used it for reputable appliance repair person and used dealer. The one exception I'll make is I do have AC service plans through my Gas/electric company (BGE in MD) that has no deductible and they have their own techs to dispatch so service is prompt and competent. I pay around 20/month. Its actually less expensive than a warranty plan, but they will not pay to replace your HVAC unit once it dies and there are no available parts to bring it back to life. It has helped me justify extending the life of some of my units. Many other states offer these types of plans through your gas/energy company so you should look into that if you are concerned about AC unit being old and not wanting to proactively replace.

 kwikset smartkey version of the storeroom lock. I love the smartkey locks. super easy to re-key on my own. problem solved.

https://www.kwikset.com/products/details/light-com...