Rental Property # 7 Debrief

Okay, This is the start of the cash purchasing series. One of our family member has a well run marketing business in Vietnam. We are able to transfer the wealth here to purchase some US real estate during the down term

This purchase is another MLS find. It needed lot of repair. I think this was the 1st time i started to do a full cosmetic renovation from the inside out. finding a good contractor was challenging. However, I manage to pull it out under control

Renovation: $10,000

Financing: Cash

Rental: $1290 ($1350) as of 2015

Here are the before and after picture for this property

Before

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garage 1 garage 3

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After

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What is happening to this property

2012 update: After rehab i was able to move in a “good” family. that’s what i thought. Well, they are good until they are consistently late on rent and periodically gave me story on their life drama. I was able to handle the situation for 1 year before it got out of hand. I transferred the management to the property manager and seem like thing is under control.

2015 update: the tenants after more than 2 years of staying move out all of the sudden. and left a mess behind. their deposit money of course won’t be able to cover the repair. I did what i have to do. rehab the property once more time and leased it out again for $1350. I hope that thing will turn out better this time. The property is now worth more than $130,000. At least i know i gain some equity if all else failed…

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Lesson learned from this deal:

Do not rush when finding your tenant. make sure to vet them out top to bottom, inside and out. I rather have a house sit for 3 months on market rather than have a bad tenant renting it. I learned it the hard way. Even if you managed to find a good tenant in, thing can still turned South. Make sure you have the cash reserve needed for unexpected repair and event in the landlord business

3 thoughts on “Rental Property # 7 Debrief

  1. Great work with the rehab, this place looks amazing !
    You are right, anyone would want to live in a place you fixed up.

    Looking back, do you think you missed something in the tenant screening process ?
    What do you think is the best indicator for good tenants ?

    thanks
    -JL

  2. just make sure they look clean and have the income that 3x the rents. also absolutely stay away from the people that pressure you that they want to move in ASAP

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