All Forum Posts by: Tom V.

@Nicolas Franckenfeld

I understand that buying a drug-dealer/pit bull building holds out the promise of great returns.  Personally I would not buy a building like that.   For context, a week after I bought my first investment property in Sacramento, the vice squad showed up and kicked in the door of one of my apartments.   I have been in exactly the same situation as you, thinking about how to maintain some remove from potentially irrational tenants.   After that first experience, I have passed on a number of actual pit bull buildings that looked great on paper.

I try to step back and remind myself what the purpose of an investment is.  Is it just the money?  The money gets you something, but it should be a better, less stressful life.  You are here on an internet message board with people telling you to buy a gun if you want to make XYZ investment.  I've just decided that if I think there is any physical risk to myself or my family or what have you, I'll opt for the lower return.  

I have kids and I don't 'need' to swing for the fences.  If I was 25 again I might have been more willing to take the risk you describe.  But then, I would not have had the capital, maturity, or patience to see it through.  

The open secret about all of these high cap rate, high cash flow properties that people brag about on BiggerPockets is that if you get a rough property, you'll get rough tenants. Period. Whatever town, whatever market, whatever angle you want to play. It's possible to make money doing that. How sure are you that your turnaround play is going to give you a nice place with nice people? If you are 100% sure, go for it, and suck up the risk. But if a really smart, really crazy person wants to find you and follow you home, no out of state LLC is going to hide you.

As a last note, I take a role as you describe - I show up and lead with "the landlord company asked me to do this."  I have $2K truck that looks like a landscape worker hand-me-down, and so even if my tenants figure out who I am, I'm the guy in the truck trying to help them, not the bigwig to hate.  

You are trying to figure out how to get into a business where you are afraid of your current customers and want to hide from them.   Make sure that is the business you want to be in.  

Nobody who owns pit bulls is very bright.  Dont buy a junk property if you are worried about it.

Maybe I am biased by California Landlord / Tenant law, but giving your tenant 3 days to move out just because her boyfriend applied seems like not enough time.   I think your best case is that she finds another place in 30 days or so and moves out peacefully.  She should pay you that rent but not more.   Give her back her security deposit.

I also question the value of copy-pasting the offenses in an e-mail to the people who obviously know about the offenses.  Makes you seem like kind of a jerk.   Even if they were deceitful, purposefully misleading etc., you as the landlord need to be the firm considerate adult in the situation.  I try not to rub peoples' noses in their own problems.  

Good luck, but remember it will be hard for her to find a new place to live and if she doesn't, she still has the keys to your place which could be damaged by an irritated boyfriend.   

Your lease seems clear and enforceable.  You aren't in a weak position here, just be cool.  

You dont get to charge her first and last.  She owes you daily rent from move in to move out.  More likely you will have to monitor the boyfriend visits, but your best bet is to get her to leave voluntarily or terminate the agreement legally as best as you can.

if I had a dollar for every time someone had a "fiancé" show up...No.  Say no.  

I am so gglad someone posted the YouTube video.  That guy is solid gold.

Keep saving.  Keep studying.  Be patient.

I doubt that the wall on the right of the kitchen is holding up he house.    The space between the living room and the dining room as a single volume sugg sts that you ceiling joists span from outside wall to outside wall.  

Here you go: 

Your best bet is to position this as a more open midcentury-ish flip.  

Exterior

1.  Think about the landscaping.  It stinks.  Low water use, pretty plants.    

2.  The stone veneer on the front is brutal.  Can you put nicer stone veneer on? 

3.  Get rid of the granny awnings on the front. 

4.  Paint it a dark neutral color. 

Interior. 

Refinish the wood floors darker. 

See floorplan comments.  You need to make the house feel bigger with the low ceilings.  You can do that by opening up the walls in the common rooms.   Sunroom in the back is great, but you should push the hallway through to make it accessible common space.  Only accessing off one bedroom is tough.   I am not an architect (shocker!)  Your mileage may vary.  

It will be tough to do this with 80K.  You definitely won't get it done in 4 months.  

You'll need to stick to paint and a new kitchen if you want to get it done fast.   Make it pretty on the outside and feel fresh inside.  

Good luck!

Looks like your project is listed.  Good job and good luck to you!