Offers on 2 multi-units and an eviction

Posted on 07. Sep, 2010 by in Finding Apartment Buildings, Landlording Rants, Makin' Offers, Multi-Units/Apartment Buildings, Networking, Private Lenders



Do you remember my last post where I talked about finding a motivated apartment owner by reading the paper at work?

Well I read the paper again and found another gentleman who was willing to hold some financing. Sooo in the past week I’ve looked at 4 multi-unit properties. A duplex, a triplex, a quad and a 6-unit.




Quite frankly I’m not interested in the duplex at all. It just wasn’t in an area that I’d like to invest in. Not a war zone or anything but definitely drug-ville I can see. Now the triplex was ok but it’s a triplex that should be 3 residential units but apparently the boro wouldn’t let him make it 3 residential units and one of the units is for a business. It just doesn’t fit the property…..I guess I could check with the boro to see if they’d change that, but I dunno.

The 4-unit I really liked. Keep in mind that the duplex, triplex and quad were all owned by an Amish gentleman.

amish multi-family unit owner

I gotta tell you that I pulled up to the property and I was looking for his horse and buggy

I mean there wasn’t any transportation near the property and you definitely needed it to get there (of course I was assuming he lived on a farm or something.) I even asked him “how did you get here?” He said his “assistant” lives around the corner and dropped him off.

I gotta tell you folks he was filthy. I mean his hands were nasty….soo dirty. And folks will tell you well it’s because the Amish are hard workers and you know what I’m not going to deny that they are hard workers on the farm, but he definitely is not a hard worker when it comes to his rental properties. They had TONS of deferred maintenance. Don’t get me wrong he was the nicest man….really nice, calm, well-mannered, etc. but when he asked me for a ride to his other properties I kinda didn’t want to give it to him because he smelled reallllly bad. I’m not even kidding. But I gave him a ride.

So I have to do the numbers on his triplex and quad, cuz I’m not interested in the duplex. Then today I looked at a 6 unit. Veryyyy well kept property in an area that is completely new to me (actually so was the Amish dudes properties.) The 6 unit is the guy willing to hold some financing. He claims he has someone else interested in it as well…but as we all know, “being interested” and making and offer and actually going to settlement are 2 different things, right?

I’m going to do the numbers and make him an offer too. Where will we get the money for any of these properties? Hey…maybe a private money lender who wants to earn a decent rate of return on their investment. Ever since I got private money for my last 2 atms (which are doing very well, by the way) I’ve been casually talking to folks about private money.

On to my current rental property….tomorrow I will be posting a Demand for Rent notice on the property and I’m 99.99999% sure I’m evicting this tenant this month. I’m not even going to tell you his excuses because I really didn’t listen as I didn’t care. Don’t get me wrong, I’m a very nice landlord, but I’m very firm as well. And I stick to my guns and start the process when you don’t pay (and especially when you don’t call and give me a heads up as to why you haven’t paid…not that I care to hear your excuse, but it’s just a courtesy thang with me I guess……ya know?)

Anyway, I really like these tenants and apparently the hubby is asking if his dad will bail him out (mind you, the tenant is a grown man, in his late 40’s or early 50’s.) I told him that if his dad or brother bails him out this time that I would be willing to sit down with him and his wife and go over their finances with them and help them come up with a budget. Basically, the guy has a spending problem….he buys crap and then has no money for the bills.

Btw, he called me and said “Thank God I got your message before Maggie.” His wife has no idea what’s going on with their finances…he started whispering to me and said “I gotta go outside, Mags just got home.” Soooo, I told him that he needs to tell his wife what is going on and that she perhaps may even be the better person to handle the finances since he can’t do it…..I said she’s gonna know tomorrow when I put your notice on the door.

Soooo I hope that his dad can bail them out and I hope that they “fix” themselves but I’m fairly confident it’s not going to happen. I was chatting with my father tonite and he said “don’t worry, you won’t have any problem renting that place in this market.” Sooo I hope he’s right because I just did my personal budget with Kathy and paying my rental property mortgage is NOT in the budget lol

More on that in my next post. Btw, my hours are changing at the BMW job. I just asked the General Manager if I could work 9 to 6 on my early days and 10 to 7 on my late days. Reason being is that school started and I need to be here in the morning to get Joe off to school when Kathy is traveling, plus I want to get home at a relatively decent time to go over his homework with him and get him to bed at a decent time. The GM was fine with it.

P.S. I’m doing ok with my diet and exercise routine. Well I don’t want to call it a diet, it’s more of a lifestyle change where I start eating better………and I’m doing better on that aspect moreso than the exercise routine, but it’s cuz I’ve been so tired from working my tail off (work work and then atm’s.) This week will be better hopefully.

P.P.S. And yes, I’ve been losing weight. hehehehe

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6 Responses to “Offers on 2 multi-units and an eviction”

  1. mobilehomegurl

    08. Sep, 2010

    Wow, nice update Carey! Seems like you’ve been really putting in a lot of time to view these multi units. And, nice pics! :)

    When I was looking into multi units, I remember reading something about really taking the time to view each unit and meet and talk with the tenants (if occupied).

    I remember reading that you can actually find out a lot about the property just by talking to the tenants. Often, they will share some info about the property (i.e. what needs work and what doesen’t, problems they’ve encountered while living there, etc). Though, I don’t recall the book but I’m sure this has some bit of truth to it!

    Looking forward to hearing how this all pans out, thanks for sharing!

  2. Scott Costello

    09. Sep, 2010

    Doesn’t it seem like there is no time for rest when working a full time job and then doing everything else you need to do for REI and stuff?

    Sometimes I have to force myself to sit down and watch 20 minutes of TV so I don’t burn myself out.

    I love it though! good update and Amish people freak me out..lol
    .-= Scott Costello┬┤s last blog ..Coaching Review- Assignment 1 =-.

  3. Esi

    09. Sep, 2010

    As much as i like the idea of cashflow, evicting a tenant is one of the things that makes me weary of being a landlord, especially if the tennat is a problem tenant, they might do more damage to the house on thier way out. I’ve never met an amish in person, just on TV…though the description fits African farmers I’ve met. I’m not trying to be judgemental, but, looking to daddy to bail him out?….no comment.

  4. Flippin' Carey

    09. Sep, 2010

    Rachel I try to put in as much time as I can…it’s definitely tough though with a ft gig and with the atm business. Although this week has been wayyyyyyy better with the atms because we planned better so I haven’t had to fill any. Which is awesome and why I can do real estate stuff.

    And you are absolutely right about getting into every unit. I didn’t get into every unit at this point, just as many as I could, but at some point you DO want to get into every single unit, whether it’s a 5 unit property or a 200 unit property.

    I did, however, talk to as many tenants as I could. I always do that when I’m the principal in the transaction, potentially, but as a real estate agent I’m not allowed to talk to them, but my clients are. One of the tenants told me about a cock roach problem lol Tenants are filled with useful info!

  5. Flippin' Carey

    09. Sep, 2010

    Scott,

    It sure does seem like you get no time for rest. Although on the weeks where I literally have no time to rest tho (work and atms) thenthere seems like there is no time for real estate.

    This was a good week though, that’s for sure. I can’t tell you how long it’s been since I’ve watched some tv. I had it on last nite but I wasn’t watching it…it was background noise while I was doing real estate. Couldn’t even tell you what was on lol

    Now I gotta ask…why do Amish people freak you out? lol

  6. Flippin' Carey

    09. Sep, 2010

    Esi,

    That’s precisely why I’m concentrating on multi-family properties. With those, you make sure there is enough cashflow so you can hire a property manager and there go all of your landlord worries…they now become the property managers. You, of course, want to manage the property manager but it’s quite different than being a landlord.

    These tenants I’m not worried about. I actually like them a lot and they like me as a landlord (I’m very good and respectful of my tenants, but I’m firm and I don’t mess around with MY rent :-) So I am not worried about them causing any damage to the place. They are the only tenants that I’ve ever had that keep my place immaculate. And actually have done upgrades.

    And you can be judgemental Esi…I mean he’s a grown man (late 40’s early 50’s) calling his daddy to help bail him out!

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