All Forum Posts by: Heidi Kenefick

@Tanner Marsey

Thanks. I think for me the issue is that so many of the repairs are very expensive but don’t add any value. New septic tank for example, was quoted at $6000, and that doesn’t really add any value. I’m not sure how much the asbestos removal is, the inspector said it can be in the “tens of thousands” and that a contractor wouldn’t do work without it properly being removed first. And the well will likely need to be fracked in order to increase the water in it, again, not sure of the price of that, but it doesn’t sound cheap and it doesn’t really add any value. We had planned to do a lot of the work ourselves, but learned we can’t take down a wall that really needs to come out to make the whole place feel bigger, because it is load bearing.

It’s definitely disappointing, but for my first live in flip/house hack, I think it would be better to start with something that won’t leave me overwhelmed. Unfortunately for the sellers, they now have to disclose all this information to future buyers, whereas when I looked at it, nothing was disclosed because they didn’t know. It’s like they say on the podcasts... you don’t really learn until you start!

Just walked away from my first deal. I’ve been looking for several months for a two family, in a good area, with potential for value add through renovations. I found a single family with a detached cottage already rented out, in one of the best towns in this area, with motivated sellers as it is an estate sale. They took my initial low offer, but we just had the inspections, and I decided not just to walk but to RUN!

Problems included: septic tank leak, failed water flow test for the well, evidence of carpenter bee infestation in the house and termite infestation in the garage, leaking pipes, roof was bad and all the windows were bad. The detached house had mold in the crawl space and attic. There is asbestos insulation, and rotten sills on both the garage and the main house, and electrical problems (short in the bathroom, no grounds, and not enough AMPS for the house). The money for the inspection was literally the best money I ever spent. Saved me a huge headache and a lot of renovation costs that otherwise would have been unanticipated.

It does have me wondering, should I make a super low ball offer, like the land value only, and then just knock the house down and build a new one? Anyone else ever walk away from a (perceived) deal due to bad inspections or find yourself in a similar situation? What did you do?

@Mariusz Bojarczuk

Sorry you find yourself in the same situation. Wintertime is likely a factor as others stated.

I did get mine rented, but it involved lowering the rent (once I realized mine was the MOST expensive house in town), and making the PM take new pictures and I wrote the description and sent it to them to post with it.

Property managers don’t really care how long it takes to rent. They get their fee regardless, while you are carrying all the costs. My suggestion is make sure they are advertising your property to your standards, don’t be passive, and given that it’s winter time offer some move in incentives.

@Jane S.

Thanks for the advice and also correcting my typo! ;)

I hadn’t thought of the certified letter, that’s a smart idea. I just spoke to the real estate attorney today and told him the entire situation and he is going to gather all the legal paperwork and speak to the sellers attorney about the lease, deposits etc.

I do know that the family selling knows very little about both the property and the tenant, since it’s an estate sale and the owner is passed away. So far all I know is it was a month to month lease, he only pays $350/month, and helped the elderly lady with lawn care and errands (although the lawn looks overgrown in areas so he didn’t do a good job).

I agree kicking him out and getting a new tenant may be the best idea.

Found a property on the MLS in a desirable neighborhood, with great schools. It's part of an estate sale and has a second smaller property on the same land that has a tenet on a month to month lease. The house needs to be updated, but looks like it is in good shape for how old it is. I plan to make it a live in flip, as I'm currently renting and by moving in will greatly lower my monthly expenses while earning a little on the side from the cottage.

What paperwork do I need to be done to make sure that everything with the tenet is in order, ie deposits etc? Can I give him a new lease to sign and raise the rent? He is currently on a month to month lease at $350 a month, which is so far below market it might as well be free. Would you use the same lawyer for that as the lawyer that is doing the closing? I’ve never taken over a property with a tenet in it, and I don’t know what I don’t know and don’t want to get bit in the *** later, so I appreciate any and all advice! Thanks!

@Chris Maurice

I’m currently in the process of buying a duplex with 5% down. There are a lot of options out there, but every bank, credit union, or mortgage company has their own products. I am using a small mortgage company that has a lot of flexibility, so they can be more creative. When I bought my first house 4 years ago I was also looking for a specific type of loan that is more uncommon and while I did call a lot of banks to see if they offered it, both that time and this time the realtor recommended the bank/broker that they knew offered the product I wanted. See if your realtor has any insights.

@Russell Redford

I agree with what everyone else said, but I would also recommend looking into Dave Ramsey and his baby steps as a way to get your financial house in order. I find it pretty basic, but he does make a lot of good points. Once the “mess” is cleaned up, rich dad poor dad is excellent.

@Kevin Lefeuvre

Well, with that type of attitude toward business you will make less, IMO. My Airbnb has about a 5 percent vacancy, and I was literally turning people away.

As for the blocked dates, I’m familiar with it, but I always met with people I would be staying with outside of Airbnb, and had been talking to the host I cancelled with for weeks before I booked, and cancelled within 48 hours. So yes, he did admit that no one else in the time we had been in discussions had made an inquiry, so your assumption to know better is ignorant.

And yes, I did read the posts from other people, but the point is, Airbnb shouldn’t have to pay for cancellations. If you cancel at a holiday inn, they will refund you. It’s why people book hotels, and why people book Airbnb, they know if **** hits the fan they aren’t stuck. It’s called good customer service! If you provide a good product, people will keep coming and staying. If you are just in it for the cash, then you really are clueless to what the Airbnb community is attempting to achieve.

@Kevin Lefeuvre

Airbnb will refund fully for certain things, and illness with proof of a doctors visit is one of them. I had to cancel once for a month long stay a week in advance due to pneumonia, and the host literally wanted to keep $1100, which I thought was excessive. And he admitted to not having any other requests during the time that I had requested, so he didn’t lose business.

As a host, you can change your cancellation policy to keep most of the funds even if people cancel, which is what I had mine set to as a host. However, I nearly always called Airbnb and issued a refund to people that cancelled and called me or texted me to let me know. It’s just money, and I feel the good karma is better than the money.

So ask yourself this, if you spend a bunch of money on a reservation, and your trip went bust bc you or your child was sick, would you prefer grace or to pay for a vacation you never went on?

@Marisa Rowe

I’ve noticed a lot of people write how they will be happy when they reach x dollars. Interesting. Money doesn’t equal happiness, in fact, I know more poor people that are happy than wealthy people that are happy.

I like the idea of freedom of choice, meaning, I can choose to leave a job and not return. But people always get stuck thinking they need FU money to do that. All you really need to do is realize your self worth and find a different job that does fulfill you.

My goals for real estate are to earn enough to comfortably leave to US. That will largely depend on where I go. I’m following more of the Dame Ramsey and Mr Money Mustache philosophy of paying off all debt and saving aggressively to reach my FI number, with real estate on the side. It should take less than 5 years.