house #5!

Well, negotiations are over! After our 125 offer, the bank came back with 149 (asking was 154900 down from 167900). We took that as a strong sign so we came back at a solid 140, expecting another write-back splitting the difference. They accepted!! We just bought a triplex in decent shape for $14000! Unheard of. But totally awesome. Now of course we have to secure financing and get our inspection but I'm not expecting any surprises.

People ask why we offer low (like the 125) when we know it's not feasible. ALWAYS make a low first offer. Any sensible seller will at least write it back...they'd be foolish not to, even just writing it back at full asking to make a point. But by making a low offer you can get a real feel for where the seller is willing to go. For instance, in this case, if the bank was really eager to sell fast, they may have come closer to our 125 offer. By writing it back at 149 they made it clear that we needed to come up in order to buy it from them. But if we had offered 138 or something equally reasonable, we would have finished around 145 instead of 140.

Of course, there are some exceptions. Heck, we made a full asking offer on 31 Spadina. But in that case it was a turn-key property priced well below value. There were 6 other appointments the next day to see it. By making the full price offer with a 30-day closing period, it encouraged the seller to accept quickly and cancel the other viewings. But in my opinion that was still offering low since the house was undervalued.
Financing has gotten interesting too. I'm not sure we'll get a conventional mortgage for this one. We are right on the border of what CMHC will accept for our total debt ratio. But just when we thought we were toast, we learned about short-term seconds. But baby is calling so I'll discuss that another day!

house #5?

Well, the King St property was a total bust. We saw the rest of the interior and it needs thousands in repairs, and not minor stuff. We're talking plaster replacement, flooring, bathrooms. Yikes. He is going to lose the place...he owes 240K min and you'd be stupid to pay more than 180 in its current condition. Poor old house. Maybe someday the bank will own it and let us make a reasonable offer but until then it's off the radar.

However, we are putting an offer in on another project, which has already been taken by the bank! Its directly across the street from the one we own on Spadina. 2/3 vacant, needs lots of lipstick. But it has new roof, windows, and furnace. It needs a new fire escape though, which will run in the neighborhood of $10000.

But here's the fun part. We have offered only 125K for it, we expect to finish around 140. It will EASILY appraise for 210 and if we re-fi for that we could pocket 42K in cash.

I love bank sales.

long neglected Blog...

Wow! It's been 2 months since an update. But I have been busy and all I guess. Ha. My last little update was about the busted property on king. He did not accept our offer. We are sitting tight to see If he'll be more amenable to a low offer in a few months - he hasn't had even a whisper since our offer and the building is not getting any better. I think one of his tenants has moved out also and yesterday we saw a city notice to comply for the trash piled in the alley. I'm thinking he'll be a bit more desperate in a few months.

In the meanwhile though we've just been to see a 23-unit building. Hahahahaha. But seriously, financing is getting to be a challenge no matter how big the mortgage so why not go for 3/4 of a million? LOL. That's insane. Either way I don't think this one is for us. But we are definitely going to be looking soon for something a bit bigger than the Victorians. Yikes.

On the tenant front, I have an impending turnover in the basement at Spadina. It was easy though and the new tenant will be moving in in February. She's very young but has financial support from CAS until she's 21 and still in school. Here I go again being a social service as well as a landlord but I just can't help giving these kids a shot in life. We both feel like we could possibly make a difference in their lives - maybe starting out in our cute little place will make the difference between success and failure in her life - and change the pattern that put her in foster care and living on her own at 18. I'm probably bring idealistic. We also have this fantasy about meeting a kid like this who really proves that she wants to work hard and succeed - and we can help a bit more than just rent to her - sort of be a benefactor type deal.

Crazy, I know. I just think there are so many people who would be in a different life if not for just a tiny hand up...either the existance of the hand up or the lack thereof.

catching up

I know I haven't updated in awhile but I've been busy bringing in the next generation of our little dynasty. LOL! Corbin is the baby landlord and he arrived October 17. Yay!

And in the month between the last update and his arrival, I managed to (despite being forced off work by high blood pressure) get both vacancies filled with good tenants. The ship has been on a fairly even keel since then.

So what better thing to do than make an offer on a decrepit property? I mean, what do most people do when they have a 4-week-old infant, are on mat leave, and a month before Christmas? Ha!

It's a GIANT 5-plex we saw about 3 months ago. It's gorgeous and solid and has all the right updates (plumbing, electric, etc). It also has a busted roof, a flooded vacant unit, and 4 of the worst tenants the city has to offer. He bought it 3 years ago for $255K and is trying sell it for $279K. But he hired a property management company (he lives in toronto) and never visited his property to see what they were doing to the place. It is currently one small step above gang hangout and it is amazing how quickly people can wreck a place.

We need vacant possession (I don't want any of those tenants) and we offered $230K. Now we see how desperate he is.

Busy busy busy

Well, things are going well. The evicted tenants actually, well, evacuated. Without being evicted. Awesome! Strongly worded letters and threats of rent subsidy loss go a long way. They also did not damage the place or leave it filthy. It's grimy, needs a good scrubbing, and they left both a pile of trash on the lawn and about 6 million fleas to kill, but all in all I think it was a success. And as Rob says, NO MORE CHARITY CASES.

Alas, S. at Sanford #3, he of the moving-not-moving saga, is moving again. :) He has a chance to play baseball in New Zealand for 10 months, which is totally awesome and I say GO FOR IT. Do NOT pass that sort of shit up.

I have a really good prospect for his apartment, on phone screening. Here's hoping it's a one and done and I can get these things rented out before baby enters at stage right.

D-Day

Well, today is September 3! The rowdy tenants at Spadina #1 are supposed to be out by the end of the day. Do you think they will?

I'm feeling a little more confident about it - yesterday when I drove by there was trash on the lawn for pick-up, so they're at least moving stuff OUT. Hopefully that means that they are also moving THEMSELVES out. I should be getting a call today that they've left the keys (hoping).

Then I get to see the state of affairs. Sigh. Here's hoping it's clean and not broken.

In happier news the new tenants are in and happy at Sanford #1 - A&L. R&A moved out before noon, and A&L got in that afternoon with a mailbox key exchange and me at work! It actually went smoothly! I have never pulled that off before. I do have a pile of crap in the driveway to get rid of, but that's a small price to pay.

Well, it has come to that

I served the second notice to my tenants today - their termination date is set as September 3. Two weeks from today. Sigh. I was hoping it wouldn't come to this but I've received nothing but complaints from EVERYONE. Neighbors, both other tenants in the house, blah blah blah. It sucks. So I give up. I gave them a chance and now they've used it up.

So I'm hoping that they just leave, but I bet they don't. They're just stupid enough to try and fight it. I will have to go tomorrow to get a hearing date from the tribunal if I don't hear from them today. Bah. There goes $170. But at least I still have their deposit so I'll get it back, I suppose. And then holdover rent, because most people being evicted do not pay their rent either. And I'm sure they'll behave like church mice too while we're waiting. ACH! This will not go easily.

I hope I get the unit back in good shape. Before I have this baby. Lots of ifs here aren't there? :D

NO MORE DOWN ON THEIR LUCK YOUNG COUPLES!!!