Recent Events – Rental Property ownership

On October 5, 2010, in Uncategorized, by David Monsour

When it rains it pours.  This statement basically describes the past few weeks of rental property ownership.  Along with the prior I’ll also attest that easy money or any thought thereof is a complete myth.  Broken pipes, water heater replacements, thermostats, roof leaks, and any other possible house related problem are to be expected especially if the properties are a little older.  Beyond the obvious maintenance items dealing with tenants is another battle being fought at the same time. 

TIP:  Screen tenants very carefully.  It’s better to wait a little longer for a good tenant to come along than to rent to a bad tenants only to find out they aren’t paying and need to be evicted. 

In the past two weeks I’ve successfully evicted a tenant with only one visit to the courthouse.  Luckily the first notice was enough that they vacated the property.  I will not give any hints on how to stay longer because frankly it’s not fair to the owner and well, I just don’t want anyone to know how to screw there landlord for hard earned dollars.  I also found a water leak which turned out be an easy fix.  The water heater stopped heating water.  I was lucky enough that it just turned out to be a small pilot light issue which was resolved at a nominal fee.  Last but not least there is a leaking roof at my “best” property.  Based on the age of the roof I’d like to assume that this repair will be relatively minor.  Rubber roofs aren’t expensive and are typically easy to repair. 

On a brighter note I’m chasing a few new leads via my membership (local representative) at which is a great resource if you’re looking for foreclosed property.  At this point we are just working through the financials so that we know how much can be spent on a home and what kind of home will be the most suitable.  It’s important to have a clear portrait of a buyers financial situation so that time is not wasted.  Nothing is more frustrating than working with a buyer for a few months only to find out that they aren’t qualified to buy. 

The Gettysburg real estate market seems to be fairing pretty well at the moment.  I would be lying if I said that prices were increasing and homes were flying off the market, but we are still moving some houses and will continue to do so.  Interest rates in the low to mid 4’s are certainly playing a factor in the current activity.  Prices are also getting more and more competitive.  Unfortunately along with low prices comes a lot of short sales and foreclosures which are slightly more difficult to purchase.  If I had to choose between the two I’d buy a foreclosure over a short sale.  It’s quite a bit easier to close a foreclosure in a predetermined amount of time.  The short sale process puts the buyer and buyer agent at the mercy of the bank and investor who, in my experience, tend to take their grand old time. 

My plan for today is to build a distressed property resume so that I can apply to list foreclosure properties.  To do this I’m going to have to apply to the asset managers and make a case for my ability to close deals involving distressed real estate.  I have no doubt I’m able, but convincing a stranger via a written document could likely prove more challenging than I first thought.


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