All Forum Posts by: Michael Gandy

I purchased a property about six months ago that went through a three piecemeal inspections with a home inspection firm.  Each home inspection didn't cover the entire house, but only portions of the house they were able to access due to seller issues with the full rehab.  As a result of a rush job from the seller, I'm now encountering significant issues (electrical, insulation and roofing) that were not identified in any of the home inspections completed by the firm.  Additionally, for those 'minor' items that were supposed to be fixed, the seller provided pictures of the fixes such as installation of GFCI outlets, which I now have found out were installed incorrectly and are a safety hazard to the current renter.

Has anyone had a situation where there are significant items that were not caught in the home inspection - anticipating likely between 10-15k in repairs that should've been caught in the inspection based on a few estimates.  I've read through the the disclaimers, but feel this borders on negligence beyond what a standard home inspection should have found.

Seems like there may be recourse, just not sure what others have encountered either against a home inspection or against a seller providing pictures of a fix which were cosmetic but still had underlying safety issues.  Thoughts / suggestion are welcome.

Quote from @Michael Gandy:

Quote from @Hnu Thaper:

Hey guys I know the company, Rent to Retirement, has been featured a lot on Bigger Pockets and has gained some traction in the overall real estate space. 

I was wondering if anyone has any experience working with these guys, or if anyone is in the process of looking at properties they are offering? 

Hnu,
Great that you're asking the forum.  You'll likely get a blend of experience, which is really important as you're exploring turnkey providers.

I currently have three properties through R2R and not very pleased with the experience since purchasing my first property last April.  It's really important to make sure you're entirely comfortable with the process & understand many of the providers of these houses are trying to make a profit.

Zach and team definitely are doing their best, but it's still on you as the buyer to be diligent and ensure you're happy with the final product from the seller.  I only say that because of my most recent purchase which went through three home inspections in a piecemeal fashion, and ultimately missed a few items because of the patchwork inspection process.  The property has had a number of issues since purchase in October 2021 and only starting to cash flow in May 2022.  FWIW - Zach and Scott have tried to find a workable solution to help make this less financially painful. 

My advice - if you have any hesitation about a property and you can step away, you should do it rather than trying to salvage it.

The other two properties I've purchased through R2R have had issues come up this year where it wiped out most of the year 1 cashflow due to a vareity of reasons from poor quality installation of flooring (which had to be fixed) to having a tenant leave because the breaker box wasn't tested for peak electrical loads (in the inspection).

Again, my experience may likely be very different from others, but with that said, I encourage you to explore their services and go into it with eyes wide open.
 
Happy to chat in more detail if that would be helpful.

Wanted to clarify the earlier post.  It's worth noting that there are always challenges in real estate investing, which I've come to realize.  Rent to Retirement was responsive and helpful in resolving any issues that came up both pre and post purchase.  Zach and team were great to work with each step along the way.

Quote from @Parker Thornburg:

Curious if anyone has purchased a turnkey property with Rent to Retirement.  I obviously hear their ads on the BiggerPockets podcast, and the model sounds intriguing.  If anyone has an experience they would be willing to share, I would appreciate it!

Parker,
I've purchased three properties from R2R in the past year.  As with anything, I'd definitely encourage you to do your due diligence and get as comfortable as you can in the process.

If you'd like to chat in more detail, feel free to DM me.  

Quote from @Hnu Thaper:

Hey guys I know the company, Rent to Retirement, has been featured a lot on Bigger Pockets and has gained some traction in the overall real estate space. 

I was wondering if anyone has any experience working with these guys, or if anyone is in the process of looking at properties they are offering? 

Hnu,
Great that you're asking the forum.  You'll likely get a blend of experience, which is really important as you're exploring turnkey providers.

I currently have three properties through R2R and not very pleased with the experience since purchasing my first property last April.  It's really important to make sure you're entirely comfortable with the process & understand many of the providers of these houses are trying to make a profit.

Zach and team definitely are doing their best, but it's still on you as the buyer to be diligent and ensure you're happy with the final product from the seller.  I only say that because of my most recent purchase which went through three home inspections in a piecemeal fashion, and ultimately missed a few items because of the patchwork inspection process.  The property has had a number of issues since purchase in October 2021 and only starting to cash flow in May 2022.  FWIW - Zach and Scott have tried to find a workable solution to help make this less financially painful. 

My advice - if you have any hesitation about a property and you can step away, you should do it rather than trying to salvage it.

The other two properties I've purchased through R2R have had issues come up this year where it wiped out most of the year 1 cashflow due to a vareity of reasons from poor quality installation of flooring (which had to be fixed) to having a tenant leave because the breaker box wasn't tested for peak electrical loads (in the inspection).

Again, my experience may likely be very different from others, but with that said, I encourage you to explore their services and go into it with eyes wide open.
 
Happy to chat in more detail if that would be helpful.