Negotiating Rental Property #5 Update – They sent a repair sheet – Dumb Move!

So the other day I told you about the funny negotiation story for property #5. Well… they sent over a list of stuff they did to the place that justifies a 5k mark up in price.

Here is everything they did… (When keeping it real back fires)

Screen Shot 2013-04-17 at 11.31.38 AM

As I analyzed this repair sheet, I couldn’t do anything but laugh.

Red Flags

I will either walk from this deal or drop my price by 5K grand because of these…

Cleaned attic with bleach (dog smell)*

My property manager said the place smelled horrible. Now I know why. However, why in the flying hell is a dog in the attic? This pisses me off more than anything. Think about it for a second, has your pet ever just tip toed into the attic for any reason at all?

Cleaned air vents with lysol (dog smell related)*

I have a dog myself, I lived with dogs all my life. Your whole home does not reek of dog, unless you’re not taking care of your pets. This is why I wrote the article about not allowing pets at my rentals. It has nothing to do with the dogs. It’s because I won’t stand animal abuse. Keep in mind my tenants are all on government assistance and make often less than 15K per year! Not to say low income people can’t take care of animals, but my experience with the area and the tenants proves they can’t meet my animal care standards. So, they are not allowed in my properties.

Cleaned up broken glass from break in*

This is a deal deal deal deal deal breaker. Now, I knew going in this was a rough neighborhood, but one thing that kills your returns faster than anything you can imagine is safety issues. It takes months to get a property ready (in some cases) and within 30 minutes you can lose 6K in copper and major appliances. This property is getting cheaper and cheaper if I take it on…

Conclusion

We are going to let them sweat it out. The time for them to accept my offer has already expired, so we are going to look for better homes. My real estate agent has a ridiculous network and has already sent me 6 houses in better areas and in better condition. Moral of the story is don’t look a gift horse in the mouth. They purchased this property in 2009 for 24K, and I guarantee you they are losing tons of money. They should have said, “Forget the cheese, let me out of the trap” and took my offer. Now they have to sit on a house that’s not performing. Look how much damage one shitty dog owner did!

UPDATE! WE PULLED THE OFFER…NO DEAL!

 

If you want more information about my deal check out my one on one real estate sessions by clicking this link

0 comments

  • JT /

    Good thinking. I wouldn’t take the place if they gave to me for free. The neighborhood would suggest that repairs could eat up all your profits. Sounds like you have a good head on your shoulders and a good property manager.

  • I’m learning more and more every day. Funny thing is… if this was 2 years ago, I probably would have taken this deal :/

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