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All Forum Posts by: Edward Debbs

Edward Debbs has started 4 posts and replied 45 times.

On two different houses we've had either an indoor system or an outdoor drain.  The fix depended on the property.  If you have a high water table you'll probably need an indoor system anyway.  Sloped back yard?  Probably an outdoor system.  Our indoor system choice as also influenced by having to jackhammer up a large concrete patio in the back yard too.  Cost difference was probably going to be 15k.  

One thing I can say is that I liked the results from the outdoor system more.  Both basements are dry.  The indoor system one is still more humid however, because even though the water is managed it ultimately does get in.

Posted a scatter chart of price/br and price/sq ft in my area.  Houses are all bungalow style so it's a little difficult to make sense of some of the data.  Sqft obviously has no reasonable correlation to price, although bedroom does.  I'm the 3 br dot just below the trendline.  Average for asking rents is 2107 for a 3br.  I'll continue to collect data over the next several months and have some discussions with real estate experts.  

These are asking prices, I'd like to see what people are getting.

Joe-

I realize your advice is the most rational.  I get the impression that you make money because you live by your system and your system works.  I don't want to get a bad reputation here for ignoring good advice.  I absolutely see that you're hitting the nail in the head.

And you're right I am rationalizing and I know that.  The area has an attached country club that I still want access to and a lake area that I intend to start using on weekends.  I also think, looking at my numbers, that I can move this property into profit in the next few years.  If profit on the property was my absolute goal I'd be hand waving, but as I mentioned it kinda-sorta isn't (completely).  

In the next coming years I'll be buying subsequent properties for an absolute for-profit motive.  I'll have a different mindset about those.  This property is a bit of an in-between situation for me, so that's why my decisions may not appear completely logical.  They're not.

As far as a $400 increase I see that that's not going to work.  $50 was a lot, a 2.7% increase.  If this renter moves I'm going to be out 3-5 grand: that's going to be a big gap to eat up.  

Thanks to all your replies.  I think I'm going to hold on to the place for a little while longer.  My personal cash flow will be increasing in the next couple of months, and I think I may be able to refinance to a slight positive cash flow.

Additionally, the tenant emailed me that he wanted to add a pet (went from one mature dog to two puppies).  I told him $50/month increase for wear and tear compensation.  He didn't seem thrilled but agreed it was reasonable as I haven't increased rent in 3 years.

As far as the market is concerned, I emailed my realtor to see what she thinks about the market as compared to 3 years ago.  In addition to that, I've been checking zillow and will continue to do so weekly.  I made a spreadsheet of the address, bedrooms, bathrooms, garage space and sqft as well as the asking rent.  I'm still on the lower end of br/$ and sqft/$ in my area, which I think is fine for now.  It would take me a couple years of slightly higher rent to recoup what I'd lose if this renter left.  I have no property manager and live 2 hours away so for now I'm ok with the situation and will continue to optimize.

Originally posted by @Karen P.:

On initial inspection, she had the stomach flu, and her dogs were not present. So we all guessed that's what the weird smell was. It's honestly a very strange odor. Sickly smelling.

We are going on our 3rd month of owing the property. 

Her lease does not address anything. It's basically worthless. 

This is the letter I was thinking of sending: What do you think?
 

Dear Ms. Smith,

On Friday April 24th, our contractor stopped by your apartment to determine the turn cost for that unit I would just say "entered your apartment for a scheduled inspection."  Some leases have language to dictate that there are only certain reasons you an enter the apartment, and determining the "turn cost" may not only be one of those, and it's jargon and not relevant to the conversation. After his visit we were contacted about the condition of your apartment. Specifically the unsanitary smell and amount of animal waste improperly disposed of and on the floors.

Please be aware that the condition of your apartment is unacceptable and unsanitary for not only you but your animals as well Just focus on the consequences to the apartment.  You're likely not in a position to determine the health consequences to the tenant or their pets, and the unit is your only real responsibility. It is also a violation of your lease contract for failure to maintain the cleanliness and condition of our unit. This is causing permanent damage the flooring and subflooring, which you are responsible for, but can be a health issue for other residents in the building as well. I would also delete the last cause here after the comma, you don't want to comment about consequences outside your prevue.

Effective immediately, your apartment must be thoroughly cleaned and sanitized and maintained. Another inspection will take place on May 8th to verify that steps have been taken to remedy the situation.

Items to be addressed are listed below:

During the inspection the following items were found:

  1. Litter box under kitchen sink over filled with animal waste.
  2. Mold growing on the animal waste in the litter box.
  3. Kitchen sink drains extremely dirty and filled with a thick layer of grim.
  4. Pet waste found on floors.
  5. Strong unsanitary smell.

After discovering the condition of your unit, the decision has been made to rescind the transfer offer I would address this issue in a separate letter, just focus on the point of this letter and trying to get the situation resolved as best you can.  You probably made no promise in writing that you're renting to them again so you can deal with that at another time.  You also don't want to run into: well they're not transferring me so I'm going to be difficult.

Failure to comply with the above request will result in termination of your right of occupancy and you will have to move from the premises I would just reference the legal action you're going to take: If I don't see X Y and Z improvements at the next schedule inspection dates, I will excessive legal action X .

Please make every effort to remedy this serious situation. Please contact to confirm receipt of this notice by Friday May 1st.

You may reach me at --------

 Your letter was probably fully effective and garnered the result you wanted .  I've had to contact lawyers about similar problems in the past and have updated your letter to reflect what I learned

(see print in bold)

.  Just my opinion.

Thanks for all the thoughtful replies.  As to the previous post, my goal for this house at first was to just not have to write a check to get out of it.  I didn't have time enough to list it and it was questionable that we were going to be able to get a price that would cover what we owed.  It was on the cusp.  

The reason I started this thread is I'm not sure what my goal is.  I like the house, I like the area, and I like the idea of having a second home up in NJ at some point where I can spend weekends with the family.  

I've got plenty invested in this house, but I would have too if I had just been paying rent.  Of course, money I spent it he past may have nothing to do with money I make in the future, I'm clear on that.

Would I buy the house for an investment today?  Absolutely not.  But if you asked me would I buy a house in that area that cost 2400 dollars a month for 400 bucks a month, I'd probably say yes.  Depends how you think about it.

I think within the next 12 months I could probably cut my losses in half.  I'm still weighing my options and considering if I'm OK with that, and if that's realistic.  

Hey all-

Yes that includes everything, PMI principal, interest, taxes, insurance. Whole ball of wax. We actually did refi from a 5% a couple of years back, and now we have a 25 year mortgage. Ended up shaving off a few months from the original 30, nothing significant.

Joe, yep, 30 year.

Joe-

We bought in 2008 for about 300k.  The house was already down from 340, but continued to slide.  It's probably worth ~280 right now.  I owe 260 on it.  We're at 3.5% interest.  I pay 2250 a month right now, its normally 2200 but we're catching up on escrow (insurance went up).  We collect 1850 in rent.