Latest Rehab back on Market

3/2 1500 sq ft Eichler listed at $795k.  Open House today went well.    House was a complete remodel.  Bought outside of MLS.  Daughter of lady who was living there had to have her removed to a care facility.  House was in fairly bad shape - new roof, new kitchen/bathrooms including flooring etc.

Pot House Back on Market

3 weeks and $25k later - house back on market.  Looks good.  Fingers crossed it goes for list price - market is definitely slowing down.  Market cycle generally slower after kids go back to school and people start thinking about Halloween, Thanksgiving and Christmas.  

What the Seminars don't prepare you for!!

Some pictures of my recent experience.  3200 sq ft house rented out to a nice family for three years.

Guy lost his job, couldn't find another one that paid enough, so decided it would be a good idea to grow some pot in my house!!! 

All of this discovered at the time of eviction - sheriff shows up for eviction and guy walks out wearing a bullet-proof vest. Property manager calls me in a panic, so I get in my car and drive to house immediately.  Back up called, guns drawn, all occupants required to come out of house with hands up.

Stay tuned.

Fire in One of Rentals

So, I get a call at 5pm last Friday night from my tenant saying they had a fire at the house and the fire crew were there.

Hopped in my car and jetted on over there - seems like fire started somewhere in the eaves area of the garage where there were no electrical wires or any other potential source of combustion - burned through about three feet of rafters and trusses of garage roof, burning one of the main electrical cables on its way, thus cutting off power to the house.

Fire investigator was perplexed as to what could have happened - still waiting on fire report as they sent off samples for analysis - stay tuned!

I got an electrician to get the power restored - went and got the permit retroactively on Monday morning - so that the tenants could stay in the house (no damage to house, just side wall of garage).

However, on Monday morning the City inspector came to inspect electrical repair, and said that even though the house was fine, the city code deemed it uninhabitable until the roof was repaired on the garage??!!

Luckily the tenants had renter's insurance (which I recommend getting in my lease - have them initial to say that they understand that my insurance does not cover incidental damage to possessions etc. if something happens at house) so they were covered for a hotel stay.

Got bid for roof repair of $4k (replace burnt trusses, rafters and repair all drywall etc.) and $1k for electrical, so went ahead and got repairs underway outside of insurance as deductible is $2500, delays would be inevitable etc. not to mention potential consequences to my insurance premiums.

Appraisal Time

Well, the appraiser brought in the appraisal at $260k, which is $15k shy of offer.  Listed at $255k, so I am sure that was considered.

Luckily, we have a conventional buyer, so we split the difference and buyer is bringing $7,500 to the table for a purchase price of $267,500 - still $12,500 over asking, so happy enough with outcome.

House in Escrow after finishing Rehab - a few glitches along the way!

Finished rehabbing house in Fairfield.  Put back on market at $255k, and went into contract with a $275k conventional buyer.  Had a total of 7 offers within 48 hours, 5 of which were over asking.

Buyers inspections brought a few issues.  I had a termite inspection before selling which came up clear but buyer's inspector said there were termites - what???   Sent my inspector back out and he sent a supplemental report saying that there are no termites - all forwarded to buyer's agent, so waiting to hear about the stand off!!

Home inspector frightened the living daylights out of me regarding roof trusses - new addition had been added about 5 years ago - with permits - and three of the original trusses had been cut flush with the roof line (pics below).   Home inspector says "some of the truss components have been cut.  This can compromise the structural integrity of the manufactured truss and could allow the roof to sag.  Contact structural engineer for repair specifications and have contractor make repairs"  - oops I said.

Fortunately, when I did as I was told and got an engineer out there, he advised me that this was likely done when the addition was put on and the pitch of the roof was changed, allowing a greater span, so all ok - whew!

Hoping this thing will close by next week:)

San Rafael Closing

Just closed on this house on Las Gallinas Avenue in San Rafael.   4/2.5 1952 sq. ft.

Made offer in January at asking of $620k.  Had thought it was a bit high at the time, but feedback was that bank were adamant on the list price and had rejected several offers that were less.   Due to lack of inventory, I went ahead and made the offer thinking that I would try to renegotiate upon approval.

As luck would have it, the approval process took over 3 months, the market has gone crazy, so my $620k is now a good deal!!

House needs updating - new kitchen, bathrooms, refinishing of hardwood floors, paint, some new carpet, fixtures and new garage door, then back on market for $795k