2012 So Far

Well, it is certainly a strange time in real estate.  Back to low inventory and multiple offers!  What the heck is going on??!!!

Underlying data suggests are we still in this downturn for quite a while to come, so my plan is to be patient and not get caught up in the bidding wars.

Good time for flipping houses - if you can find one at the right price!! 

Latest purchase for me - 3/3 1600 sq ft house for $166,0000 with $15,000 in cosmetic fix up.

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!!

Roofing Job

Latest project is a 3/2 1649 sq ft house in a great East Vallejo neighborhood. Purchased for $153k and will be spending approx. $12k on rehab.

Will be putting new roof on, granite counter tops, new stove, tile in kitchen/bathrooms and some painting.

Permits - Mama Mia

The ongoing question - when to get permits and when to chance it!

Recent experience where I sent electrician in to get a permit to change out a panel.

Two folks from the Building Dept. pulled up an aerial picture of the house and told my electrician that it looked like the storage sheds at the back were less than the required five feet from the property line - Are you kidding me???

Withheld electrical permit until we could confirm. Lucky me - 4'2" - seriously!

Ended up demolishing one and looking for mercy on the second - got input from asst City Manager who said that was reasonable and I shouldn't have any trouble!

Remains to be seen.

Closing Tomorrow

This is a 3/2 1600 sq ft. home on a big lot in a very nice neighborhood. Sold for $177k in 1993 and we are closing on it tomorrow at $155k. Buyer in place as is (want to redecorate themselves) on an All Inclusive Trust Deed (have underlying investor) for $190k with $20k downpayment.

Latest Acquisitions

Looks like the bigger houses here in Solano are a good buy - two houses below, both light fixers - each $150k 3 bedroom, 2.5 bathrooms 1700 sq ft. both with nice views - can't beat that.

Rents $1795 per month. Have buyer for one at $185k as is with them doing the paint and carpet.

Women in Real Estate Event

I recently attended a Women in Real Estate event put on by SJREI.

Great to meet and listen to very experienced and successful women in the industry share their successes and failures.

Have closed on 5 properties so far this year - price ranges $52k to $115k and combination of condos and houses.

Two very happy rent to own tenants - both have been working for Kaiser for over 10 years and one referred the other to me - love when that happens.

Two regular rentals with possible future interest in seller financing or rent to own.

Fifth deal being rehabbed and will be ready by end of month.