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All Forum Posts by: Davido Davido

Davido Davido has started 8 posts and replied 525 times.

Post: Perfecting the title

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

Hello Sandy,

Regarding the Quit Claim Deed  -Maybe, if you do not have to pay much.   However, if as you note in your post, -the property was already foreclosed, then the previous owner would be Quit Claiming nothing? He no longer has any title.   It may be better to have the previous owner "Assign" his right of redemption to you.  This article, regarding doing so in CA may be of help.

 http://corporate.findlaw.com/litigation-disputes/buying-the-right-of-redemption-a-better-way-to-acquire-property.html

In the past I have purchased a Quit Claim Deed for $250 from a person with an interest in a property that was about to be sold at our county tax foreclosure sale.  Owner 1 had sold it via an owner carried contract to owner #2.  She couldn't continue making her payments to owner 1, so she obtained owner 1's permission to sell out to owner 3.   Owner 3 made payments for a short while, then quit making any payments and managed to get 3 separate liens on the property (IRS, Dept. of Health Services, and Mechanic's Lien) then abandoned the property.  Meanwhile owner #1 appeared to have died.  None of his friends, or family, or his attorney had any contact with him for almost two years.  I found a death certificate in his name and BD in the next county over.  I paid $250 for owner #2's quit claim and paid the past due property taxes to remove it from the county property tax foreclosure sale.  We knew that within 14 months the IRS lien would be beyond their 10 year expiration, and the original debt owed to owner #1 and his heirs would also soon be beyond the state statute of limitations and become unenforceable.  Even after hiring a PI, owner #3 was never located. 

Turned out owner #1 showed up after I started logging the property.  He was not dead after all.  I negotiated an assignment of his original contract and foreclosed.  The remaining liens were all cleared and my attorney prepared a simple one page Assignment of Redemption Rights that I had hoped to get owner #3 to sign, but we never did locate him.  In WA redemption right are only 8 months so I waited it out. 

In regard to using a company to help perfect title.  Wouldn't that be your title company?

 http://blog.al.com/acre/2012/04/tom.html Best wishes to you.  Let us know how it goes.

 

Post: Would permitted triplex, each unit licensed as own B&B be a HoteL

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

@Account ClosedThanks for the good wishes and yes there are lots of hoops to jump through -as with any new construction. I agree that the peculiarities of this design (the ability to connect multiple residences) will create even more hoops and require more explanations,  than would a more traditional design.  However, there is nothing I know of in the building code that prevent connecting doorways from one residence into another. Getting the building permit is really a pretty straight forward new multifamily residential construction permitting process.  The building would be in an area appropriately zoned for multifamily residences.  I do not see significant problems getting a building permit for this multifamily design.  Nor am I concerned about being able to license all three units as Bed & Breakfast businesses.  A different department approves the licensing of B & B's in my area (Olympia WA).  The business licensing process is simple and routine. 

The question for me, comes only after opening the doorways permitting each floor to access the others.  Opening interior stair cases between the previously separate residences creates the effect of having a single multi story building -nearly equivalent to a hotel  -but in an area zoned only for multi-family.   I'm looking for anyone who cares to offer their view or experience as to whether or how the city or county might respond to information about the interconnected use of three licensed Bed & Breakfasts in one previously permitted and approved multifamily building.

Post: Would permitted triplex, each unit licensed as own B&B be a HoteL

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

Question for BP General Contractors & Developers.  What code enforcement or zoning board problems, if any, would you anticipate from building a properly permitted triplex as authorized in a medium density residential zoning, then licensing each unit as separate Bed & Breakfast business, but managing all 3 B & B’s by a single entity -essentially operating a small hotel without the commercial zoning?

Details, the multiplex design envisioned here would stack the residential units vertically instead of side by side, and unlike typical apartments or town homes, there would be closeable internal stairwells between each floor. The design is intended to allow each floor to be permitted and operated as a separate 4 bedroom, 5 bath living unit, complete with kitchen and private entrance doors to the outside. The design would also allow doorways to be opened to each floor's internal stairway so that any floor could, if desired, access the floor immediately above or below it -like internal stairways in a house. This arrangement provides the flexibility to turn 3 SFR's into the functional equivalent of any combination of 2 or 3 residences, or 1 very large home.

By permitting three separate residences, and licensing each residence as its own B & B business, all but one room in each living unit (required by code for the B&B operator) would be legally rentable for short term stays.  By opening internal stairwell access between floors, the entire building can be accessed much like a small hotel. The main advantage, to permitting such a building as a multiplex instead of as a hotel, is that Medium Density Residential zoning is available in many places where the commercial zoning required for hotels is not. MDR land and development costs are cheaper than commercial costs in multiple ways too.

I understand that under most zoning codes changing the occupancy of a building requires the building to comply with zoning and code for the new occupancy. For a hotel, there are a number of fire hazard improvements that would normally not be required of a residence -such as a fire suppression sprinkler system. However, if the triplex is properly permitted, and each B & B is properly licensed with all taxes paid, then each is being used for the occupancy originally permitted.  Seems to me that it would be difficult for a zoning review board to substantiate a claim that merely opening an internal doorway between separate residences, changes the occupancy. 

The extra costs of meeting the code for transient occupancy is not an issue for me.  It is likely to be money well spent.  Rather, I’m looking for ways to maximize income potential from parcels zoned medium density residential.  Your thoughts and suggestions are greatly appreciated.

Post: Tenant wants rent back

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

@Kristopher Hanks , said it beautifully.  I love it.  If we  are not helpful during this season, when will we be?

"Go to a grocery store that is close to where they live and buy them a gift card for that grocery store for $50. Give it to them in a Christmas card and tell them Merry Christmas or Happy Holidays or whatever you think is appropriate. Give a gift to them for the holidays if they are struggling. Do not just give the cash back to them. Enforce the rental agreement."

@Marcia Maynard, Thank you for your post.  You just gifted me with two new tools for the new year.  "That would be very difficult." and "I'm not prepared to do that."   Thanks also for the reminder to focus on ultimate goals.   Best Wishes.

Post: Nightmare tenant, help!

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

@Amber SpenceThis is a mild case of a tenant problem.  It appears that you lost confidence in the original property management company and realize that if you want satisfactory results you may need to handle some or most of the remaining interactions yourself.

If that is the case, be clear in your own mind on what you reasonably expect her to pay for. Document your reasoning as best you are able.  Follow your own heart on what is right.   Do not be swayed by potential gray areas, or even whether you have a proper lease and good move-in paperwork.  In any communications with your former tenant be exceptionally polite as well as exceptionally firm and laser focused on the fair amount (if any) you've decided to refund.    

I too doubt that she would file a suit against you. Even if she managed to file or convince someone to file, it would be unlikely that she'd appear and prosecute her suit to completion.  In this instance, I would recommend that if you did get sued, just handle it yourself.   What you learn from appearing in court on your own behalf in what you believe to be a just cause will make you a better, more competent and more confident landlord.  Handling your own case, even once greatly demystifies the process and will be worth more than you would loose.  You'll be ever after much less concerned when anyone threatens a suit.  

Note however, that a judge may not be supportive of you representing yourself.  I don't say to do it because it is smart legally, but rather because her claim in this case is likely to be less than the cost of hiring an attorney and because experiencing the process first hand will benefit you. 

Post: Success Story: Note Exit via Trustee Sale

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

Thank you @Gabe K.  When foreclosing a lien on real property here in WA (not a Deed of Trust) my own attorney would not allow me to add his fees to the Statutorily reimbursable costs -unless I had a court order. Since then I'd been under the impression that attorney's fees were never reimbursable in a foreclosure action.  It is understandable that billing is different when the foreclosure is done by the trustee.  Trustee fees are pretty standardized -usually limited by statute.  Attorney's fees can vary by 10 fold.  Your post has  prompted me to look into it further.  Thank you.

Having most or all of your equity stripped in a chapter 13 bankruptcy is precisely the concern I had.  Of course a debtors ability to file chapter 13 bankruptcy is limited and dependent upon the debtors financial situation.  Still, I repeatedly run across non performing seconds on places with equity -where the property is pretty much all the debtor has left.  I have avoided those cases out of concern over the risk of delay and loss if the debtor files chapter 13.  I also avoid cases where the debtor has or is able to claim the property as his homestead.  Those are the moves that if taken, can eliminate the profit potential of buying and foreclosing the second.  So I'm always looking for info on ways to control those risks.  Best wishes.

Post: Bed bug scare!!! What now....

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

One tool for controlling all kinds of bugs, that I have found extremely useful and efficient, but that many landlords do not consider, is to add an insecticide to both the indoor and outdoor paint of all my rentals.  Indoors a paint insecticide does wonders to limit infestations and to disrupt their ability to grow or travel.  Outside it prevents spiders and insects from nesting under eaves, flies from sunning on walls and all insects from gathering around lights.  This product will not eliminate bedbugs by itself but , if used during routine maintenance, paint insecticides are a cost and time effective way to reduce the ability of most bugs to live and spread anywhere in the building.  Just add a little each time you paint anything. There are multiple different brands, "Bug Juice", "M-1" etc.   http://www.wwenvironmental.com/bug_juice_factsheet.php  -they all contain the same active ingredient "Deltamethrin"  http://npic.orst.edu/factsheets/DeltaGen.html

Highly recommended

Post: Success Story: Note Exit via Trustee Sale

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

@Gabe K. Thank you for sharing the good news.  Would it be correct to assume that you used an attorney to file the foreclosure documents?  Is it standard practice in CA to be able to add attorney fees to the foreclosure costs without a court order?  I don't believe that attorney's fees are an automatically reimbursable foreclosure cost here in WA, so I'm wondering if there is an effective method for me to get my Attorneys fees reimbursed too.

Gabe, in this instance would you have likely lost your investment if the homeowner had declared bankruptcy or claimed the home as his homestead exemption?   Just trying to analyze the dangers?  Please let me know if you would.

Post: Tax deed sale process and surplus

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

There are likely multiple reasons that former owner's of properties sold at property tax foreclosure sales do not get the sale surplus automatically.  Often the owner is dead, committed, incompetent, imprisoned, lost, etc.   In many cases the owner simply can not be found.  My county makes concerted effort to locate the owner before the tax sale and provides notice to them about the method to claim an overage. Failure to notify, and/or improper notice, are reasons that a property tax foreclosure sale can be overturned after the fact.  A foreclosure sale which is later overturned  becomes an unwanted cost and time sink to the county, to the former owner, the new purchaser and to the courts.  Therefore, the courts require fairly stringent notification procedures.

However, after the property tax foreclosure sale is completed, any overage funds escheat to the county if not applied for by the previous owner within the statutory time limit (3 years here).  The county then has a very significant financial interest in the overages and no longer any incentive to look for or notify the previously unlocated owner.  Those interested in property tax foreclosure overages might find the following blog of interest.  A Washington State investor sued (successfully) by the Attorney General for scooping up millions in overages that the local counties had counted on.

www.pushedtoshove.com

That same investor changed his business model and now runs this site.

http://excessfunding.com/

See also:

http://www.taxlienuniversity.com/articles/tax-sale-overages.php

Post: Spokane, WA - New House - Already Having Sewer Backup Problems!

Davido DavidoPosted
  • Rental Property Investor
  • Olympia, WA
  • Posts 543
  • Votes 310

@Bryanna Mendoza, the response you received to your post is largely due to the extra thought and effort you put into it, especially by adding photos and plot diagram.  Your post was more understandable for the effort you put into it.  More power to you.  

The septic line that was plugged for me (roots) was much shallower than yours -just 2',  and it followed a declining ground level so it was never deeper than 3' from the surface.  We have a maximum  12" freeze depth here in the rainy western part of the state, so most utilities are not as deep in Western Wa. as they are on your side of the Cascade Range.  Still digging it by hand was as much a need to prove to myself that Grandpa could still wield a shovel as it was to save a little money.  As to my costs, the 140' of  4" plastic pipe I bought, was less than $300.  The rest of the $500 was PVC glues, a cutting tool,  assorted fittings, lunches and drinks.  No comment on pulling a permit.

Please note that @Account Closed had an excellent point about the drop required to effectively drain a sewer line.  We can not tell the elevation drop over your land from photos, but before repairing the existing 4" and or 6" it would pay to ensure those lines are at or close to the required minimum 1/8"/ft drop.  Please do this community a favor and some months down the road update to let us know how this problem gets resolved.  Merry Christmas.  The rush has only begun.