All Forum Posts by: Greg Brown

I just went through something similar with my last deal. I would suggest talking to your lawyer and see what your worst case scenario is if there is no lease or a terrible lease. Find out what your maximum exposure is in terms of time and dollars. Then you can make an informed decision if you want to go through with the deal or not.

Since you're a first time investor I would suggest starting with one property and see how it goes. Generally the first time you do something there are going to be some lessons learned and room for improvement, so I would find one property that you like and get that up and running. Then take what you learn from the first deal and start looking for a better second deal. I wouldn't jump into multiple properties on a first deal.

I have a home in one of the historic areas of Portsmouth that I'm fixing up now. The problem that I currently have is that the current tax assessment is WAY out of line with market value, as in it is assessed at almost three times the purchase price of the home. So unless I can get them to revise the current assessment down to closer to reality, I don't see how I can improve the value enough to take advantage of the tax credit. I have a hearing with the tax board next week, I'll let you know how it comes out.

http://www.portsmouthva.gov/forms/rehabilitation_e...

This is the program that the property may qualify for.

Originally posted by @Debra Worrell:

Its really good in Portsmouth and Norfolk. I'm closing one at the end of the month. Also the South Norfolk section of Chesapeake

 Agreed. There are quite a few duplexes and a fair number of 3 and 4 unit buildings to look at in the Portsmouth and Norfolk areas. Just make sure you do your homework on the neighborhoods before diving in, there is a LOT a variation in quality between neighborhoods that are quite close to each other.

The last inspection I got for a duplex was $450, so 800 seems a little high.

@Joseph Owens thanks for the recommendation. I appreciate it.

I'm looking for a good electrician to do some work on a rental property of mine in Portsmouth, Virginia. Thus far I've had one guy, quote way more work than I asked him to do, one guy look at it that hasn't sent a quote, and one guy that is almost impossible to get in touch with. Anyone have an electrician they really like around here?

UPDATE - They are gone!

I served them a 5 day notice in January for non-payment of rent, and they actually came up with the money. We agreed to terminate the lease at the end of February in our discussions about rent and payment terms, and I got the keys back the day before yesterday.

Next up - itemization of costs for disposing of all the garbage they left in and around their unit. But at least I can handle that and just tell them what is coming out of their security deposit to cover it. Anyone need a big old TV set? Because they left 3. I have no idea if they work or not, but I'm getting rid of them!

Thanks for all the responses. I ended up deciding to give them a 5 day notice to: pay the remainder of the rent, get the water turned on and get the gas turned on. 5 days is up this Friday, if they haven't gotten those three things done by then I'll be sending them their 30 day termination notice. I'll post another update when that happens.

Originally posted by @Michael Noto:

1. What kind of area is this house in?

2. Just because you give them 30 days notice doesn't mean they will leave.

3. Did you get this property at a discount?  Hopefully for your sake there is a value add component to this deal.

 The house is in a nice area. I have been there several times and feel quite comfortable walking around.

And I did get the property at a discount. I bought it for a little less than 50% of the value if it were fixed up and in nice condition. From looking at rents in the neighborhood it seems that it could command a higher rent if it were in better condition, too. So I feel there is a pretty good value add in getting the condition back up to what it should be.

And yes, I am concerned that they may not leave when I give them notice. I'm hoping it won't get to that level though. I did a quick background check and they do not have any evictions on their names right now, I'm hoping they will want to keep it that way.