Rough Last Quarter 2011

Well - it has been quite the roller coaster for the past 3 months between vacancies, slow rental payments and repairs.

Had 2 tenants lose their jobs and move back in with parents, one downsized but stayed with me. However, had to replace carpets in the unit they moved from (although they had been there for 4 years), paint and do some minor repairs but still cost $4,5000 plus one month of vacancy - ouch!

Then, this month had another couple hand over the keys, leave lots of furniture and full garbage cans at house - 2 day notice that they were leaving, abandoning their property and forfeiting their security deposit due to job loss. Luckily security deposit covered the costs of getting it rent ready again, and it is now back on market one week later with lots of inquiries and showings.

I will certainly not be writing a book called "The Joys of Landlording"!!

In the middle of first deal of the year - 3/1 home on fairly good sized lot. 1100 sq ft requiring about $6k in cosmetic fix up. REO listed for $84,500 with accepted offer of $73k.

Interesting case as bank had boarded up the house completely. Usually this indicates vandalism etc. I was thinking about not going in as I had made this assumption, but as inventory is low, I thought what the heck.

Unlocked the house and found that it was in the finishing stages of being remodelled - new double pane windows, brand new bathroom, tile floor in kitchen, new carpet in all bedrooms - WOW!

Believe they took my lowball offer as most other lookers had assumed the same as me and had not bothered to look inside. MLS listing had NO pictures of inside, JUST THE BOARDED UP OUTSIDE!!!

Neighbor came by when I was there with my contractor - he bought his identical house in 2009 for $150k

Investor is funding purchase and rehab money and will be receiving a monthly payment of $487.50 for the use of his $78k - better than a CD or mutual fund return for secured and PASSIVE!!