All Forum Posts by: Rumen Mladenov

@Kamira El I am currently working on my last acquisition, it is in the beginning stage of a rehab for rental. You are welcome to check the work in progress if you think it will be helpful, I will be happy to answer any questions as well. It is in Four Seasons. PM me if you plan to be in the area anytime within the next month or so.

Welcome @Kamira El! Which part of Delaware are you from? I am a buy and hold investor from Newark, I do not know much about flips as I have never done one, but I have a dozen rentals and will be happy to share my knowledge!

Congrats @George P.! I agree with @Adam Anderson, that LOC is a game changer. How did you find the bank that gave it to you? I would love to find something like this in my area, yet after approaching dozens of banks and credit unions over the years I still haven't found it.

I had a similar experience recently. Went to a sheriff sale with one property in mind, bidding started at 50 k and I was prepared to bid 75k max - I was fairly sure that no one would bid anywhere close to that amount because it was in a neighborhood I specialize in, and the value to me would be higher than to the average investor. Bidding started with me and another investor bidding it up to $64 k, the other investor dropped off but a third party jumped in and bid it all the way up to my $75 k max. I got the auction fever and bid a couple more times, but when it got to $79 k I let the other bidder have it.

Next month there was another property on the same block, basically identical to the first one, on the auction block. I decided not to waste my time again, so I didn't go. I checked the results the following day, and found out that someone else won it for $68k! I was kicking myself for not going... Anyway, I found the contact information of the winning bidder, and offered him a few thousand to assign his bid to me. After a brief negotiation he agreed, and made more than 100% return in under a week. Win win.

@Richard Cook: I have insurance but my deductible is higher than the damage. Even if it was lower, I would probably not file a claim because I do not want to lose my claims free discount.

I do not focus on low income tenants, in this case the income was fine until the husband lost his job...

@James Sloven I will be honest, it is much harder to find a fixer upper in Newark than it was a couple of years ago. Fewer distressed properties on the market, and much more competition for them. On the other hand, rental demand is very strong, at least for the areas I invest in. I prefer renting to families rather than students, but if student housing is your niche, I am sure you can be very successful in it as well. More work though...

I would advise you to keep an eye on REOs - Homepath, Hudhomestore, etc. Some of them are priced very reasonably but have First Look periods when only offers from owner-occupants are considered. This would give you the chance to bid before 90% of the competition can (many of them with the ability to pay all cash).

@Henrietta M., this is from their web site: "non-profit organization that offers legal advice and assistance to people who cannot afford a private attorney; helps people with low incomes and one of the problems covered by our services. The exact amount of income depends on the size of your family, but if you qualify for food stamps, welfare, or other public benefits, chances are that you will be eligible for our services."

I decided to go middle of the way. Offered them to drop the case if they pay another $350 towards the damages. Gave them a week to accept the settlement offer, if not I proceed.

@Dawn Anastasi, sharpie drawings were caused by the kid. I guess you could say that letting the kid do it in not one but three rooms is equivalent to vandalism...

@Stephen E. Damages were around $3,200 but I had a deposit to offset $1,200 of it, and then had a payment agreement of $100 biweekly that lasted for a month and a half and then dried up. I did most of the work myself to reduce the cost, and that is coming back to bite me because I do not have detailed labor receipts. The quote for just drywall work I got from a contractor was over $5,000 - I wonder if I should bring this to court if I end up going.

Your last sentence is spot on - if for no other reason, I would probably go to court to see the judge dismiss the case on a technicality after seeing the pictures. Court is scheduled for Dec 11, will probably be delayed if the judge grants the continuance requested by their lawyer.

Thanks @Kyle J. and @Bill Gulley. Their claim is that this is not vandalism but the result of domestic violence issues. Police were called numerous times by the neighbors in the past, and their stance was that I cannot take any action against them because they want victims of domestic violence to be able to call police without fear of eviction. I had to wait for the lease to expire and non-renew them, and then file to evict as holdover - which was dismissed thanks to the free attorney and me putting the notices in one envelope.

A few pictures to show what they would walk away from scot free if I give up... Yes, this is dog feces and urine on the hardwood floor if you were wondering. Had to sand that multiple times before staining it to reduce the stench...