1st Rental Nightmare
I just purchased our first rental property in Aug (3bed/1ba house)The first day I received the keys we found transients living there. After we chased them out, they came back that night and trashed the place. They threw paint all over the new carpet, and on the newly painted walls. They threw candle wax all over. They scratched deeply into the refurbished cabinets, door jams, doors, fire mantel......Pretty much everything. It's been a nightmare just the first month, I'm already frustrated trying to rehab. I used most of my money for the down payment. The insurance check was made out to us and the mortgage company. The mortgage company won't endorse the check until all the repairs are made, so there goes my credit cards. This has turned into a nightmare. I'm wondering if anyone else has had similar experiences so that I can keep a positive attitude toward REI. :-(
in hind sight one gets vision- always have contractors remove tools and materials everynite from project- cuts down on how much stuff a vandal has to use. a discussion with the insurance company is needed request 1/3 of the funds to get started. with the deductuble that at least should be able to get some supplies to get things cleaned back up - you just being tested for bigger things later
You did not indicate much about the property (location, condition before the damage, etc).
I have never had such a problem Years ago I bought in some 'interesting' areas but did not have transients.
I think you got unlucky and I suspect you will have less this sort of problem if you buy in better areas. Not a guarantee but more likely.
RE is a long term game and you need to enjoy the journey. Some days are frustrating. You might want to re-evaluate the type of deals you do or take on a partner who can pick you up on days you are down (and the reverse is the implied bargain).
I do more new construction deals now and have more of an issue with late finishes and places looking like a job site after it should have been done.
John
[addsig]
Hey,
I am sorry this has happened to you. It really stinks.
I have only had one house broken in to and it was rehab project. They smashed the front door with a 2 x 10, I had left outside. Luckily they walked past all the tools and stole a $2 radio. A radio that I had left on to scare away burglars.
Not to rub salt in to your wounds, but how did the transients get in the house? Both before and after you bought it? Were they there when the rehab was done?
When you say you chased them away, did that involve the police?
Assuming, you politely asked them to leave, I think you just had bad luck. I have properties in rough areas that are broken into frequently when vacant. Rarely is there any damage done. It is mostly homeless folks who are looking for a place to get out of the weather. How do you know it was the people who lived there? It sounds like the work of teenagers, on someone who was very angry at you. It is actually so commonplace to have vacant buildings broken into that people, even realtors who have a place listed, rarely call the cops. Your best defense is to make a point to talk to and have good relationships with the neighbors. I seldom have houses broken into when I have been in a neighborhood for a few months to a year. Most of the time it is on the first home I buy in an area. I doubt this will happen to you again but the key is to make lots of friends. Often it is not the person you run out who does the damage. It is a teenage friend, cousin or other aquaintance who has too much time on his hands and doen't like someone running his buddy out and trying to make a buck in the neighborhood.
Sorry for the damage.
Well I live nearby in Chino Hills. Is this prop. in Montclair, wondering what part of Monclair as I am very familiar with the area?
Did you get a good deal and future cash flow?
Quote:
On 2004-09-17 02:30, Figuli wrote:
I just purchased our first rental property in Aug (3bed/1ba house)The first day I received the keys we found transients living there. After we chased them out, they came back that night and trashed the place. They threw paint all over the new carpet, and on the newly painted walls. They threw candle wax all over. They scratched deeply into the refurbished cabinets, door jams, doors, fire mantel......Pretty much everything. It's been a nightmare just the first month, I'm already frustrated trying to rehab. I used most of my money for the down payment. The insurance check was made out to us and the mortgage company. The mortgage company won't endorse the check until all the repairs are made, so there goes my credit cards. This has turned into a nightmare. I'm wondering if anyone else has had similar experiences so that I can keep a positive attitude toward REI. :-(
The house is in San Bernardino, CA. The area it is located is considered to be a 'not so bad area'. It is north of Highland and the houses around there are well kept. None of the windows worked. They are the old crank out ones. ( we are having them replaced) We had gone to screw them all shut when we found the transients and their dog in the house. They had been using the shower and kitchen. The thing is we paid market value for this house. The owner had just redone alot to sell the house. When my husband chased them down the street, the transient sprayed him with mace. They retaliated that night. I assume they got the paint from someones trash, there was nothing left at the house. They found one screw that they could work loose. They didn't even break a window to get in. Since the water was on they flooded the house. Luckily a neighbor heard running water so he came over to turn off the main. The condition could have been worse, but the subfloor in the kitchen needs redone now too. I filled out a trespass letter at the police dept. Both incidents are on record. So far no ones been back. :-D
about 20yrs. ago i had house to do a small amount of rehabb. and then resale. it was broken into and burnt to the ground while i was in the hospital having surgery at the same time. the ins. company {state farm} would not pay. i got an attny. that specialized in ins. claims. he said it was an easy clear cut case i would have no problem. a hearing was set my attny. said i didn't have to appear it was only a hearing. later he called and said s\f agreed that it was vandalized and that the policy didn't cover vandalism. my attny. specialized in claims it was clear he had sold me out. i had to eat it. i was young. it was a "good' lesson but it didn't put me out.within the next 2yrs. my wife died, i lost my home, and several business from her dealth. there is alot more that happened more than i have time to reveal. my point is no matter how bad it gets don't give up. it took me years to over come my situation but i did...........km
Wow, and you paid retail for this house? What'd you intend to do with it? And, your husband chased the transients out, huh? I'm impressed! lol
I've had transients living in my houses when I bought them before. I've found that it's easier to hire them to do a bit of work, cleaning up, doing yard work, making friends of them, then it is to be aggressive towards them. I can't be there to watch my houses, so if I can pay one of the transients $20.00 a week to "Watch" my house, I think it's a good investment. And I've also found that if I do that, most times, nobody messes with the house, either... To some of them twenty bucks is a LOT of money, and they'll take their JOB seriously....
We were looking for a long term investment. Houses are renting for around $1400/mo in that area. The PTI is only about $900. That's a pretty good investment, don't you think? Something for me to look forward to. We bought it for 190K and it appraised for 215K one mo later. Crazy!