Does she or doesn't she? Taking a poll.

I'd go with fixing it, with the tenants being in place so long at this point i'd consider it a basic maintenance issue. Who knows? maybe with decent floors they'll be motivated to grab the scrub brushes!

Thanks Kristen,

Noted.

1 to 0

Are you a rehabber? Just checking how to who on the votes -)

to the tenant as a lease with option to purchase so they become a tenant/buyer. Ask for an option fee that would be enough for you to fix the floors and maybe have a little left for profit. Put in the L/O that as long as they make payments on time, you will apply x$ toward the purchase price. You could do a 24 or 36 month term and then ask full market value as purchase price. You could possibly make $20k in the end depending on the payoff.

shirley

wait until tenants move out... they created that mess, so if you go in, clean it up, they probably will make a mess again... also, about them buying the property-doubt it... they already told you so- 'never thought about buying THIS house'

hope you get many votes

Well... u have to ask your self, is the damage mostly from the current tenants that live there now?

And if i fix now, im sure they would stay longer but would they keep it up until they move out? You dont wana have to do repairs twice if you dont have to. I don't know the the real repairs that need to be done. But if they have been living there this long & they are happy... not sure..

Then Again

Fixing it up & raising the rent in 6 months is fair game also...
This is a people business, talk to the tenants again...

Shirley has a good idea, with her...
Good Luck, im sure you will make the right decision!

About the messes, but the reason they might not have thought about buying it is because they didn't know they could do it without qualifying at a bank. Just a thought.

Shirley

concerning the messes, did they actually ruin the floors or were they already bad? Either way, Valerie could be right about the messes. Unfortunately, some people don't mind living that way and depending on whether there are children, pets, or just lots of people in and out, it could get in a mess again. However, if they moved in it and it was not in great condition, after 9 years and doing nothing to improve a house such as painting or remodeling or fixing stuff, it can get in pretty bad shape. So you would need to evaluate the family (in your opinion) as to whether they really want it to be in better condition and if they would keep it that way. Then make your decision based on that. It sounds like the house I am working with now. It was filthy too but about 12 people lived in it and they were not related. They just needed shelter in order to work at a restaurant closeby. NOthing had been done to it in years.. The carpet was terrible, the wallpaper (yes wallpaper in every room) was peeling and in general it needs to be gutted.

Shirley

I say don't fix it. However....you might ask the tenants if there is anything that needs fixing and they might give you a small need-to-do list. You want to do at least basic maintenance.

But if they live in a mess....I would not offer to re-do floors and carpet unless they talk about it. If they've been there for 9 years, it's possible it wasn't even new flooring at that point and it deserves to be replaced.

~IF~ you do decide to re-do floors, make sure to tell them it's your policy to inspect the place twice a year. That's what my property management does, to make sure they are keeping it up.

Is the property filthy because that's just how the tenant keeps it? If they've been there 9 years... and the main thing is filth, was it the owner or the tenant that caused the filth?

Leave it as is and fix it later. Don't cast pearls before the swine. The people obviously take no pride in their living conditions. Why fix it and let them trash it again. Milk the cash cow as long as they will stay.

The cash flow is there

Tina, in regards to your question their really is no right or wrong answer. If the property is cash flow positive and the tenants have not asked for any repairs I would not want to start fixing or upgrading or renovating anything. If they see that you want to renovate the property they most likely will know that a rent increase is coming and they might want to move, or they will give you a list of repairs that now your positive cash flow is beyond negative. From personnal experience, I would get a feel for the tenant and see how they like the conditions of how they are living. You don't want to open a can of worms and what you thought was replacing carpets turns out to be a major project. And now because you insulted them by being nice turns out to be a major disagreement. They can get ****ed at you and call the city and have the property condemn because of its condition. Been there, tenants can be hurtfull!! Trying to be nice or caring for some individuals sometimes it just doesn't work. If you decide to start renovating or upgrading something you can insult them without even thinking about it. This is a situation where you must talk to the tenant and get a feel if they are comfortable in the way the home is or upset because nothing is being fixed. Everyone looks at a home in a different way and you don't want to insult or **** someone because you are trying to be nice. What is acceptable to someone is disgusting to someone else! My advise, follow your gut feeling because most times your inner vibes are the correct ones. Good luck and please keep us updated.
Raymond

unless the tenant moves out.

Nothing will change the tenant's mindset so keep that in mind while they are still there.

Or the tenant could be evicted, repairs/updates made and then charge a higher rent. Considering the circumstances, I don't think you'd get as much ROI as you would with keeping the tenant.

hey Everyone,

Tina just wants to do a poll, this is not a debate; just enter a yeah or neah (A or B)(Fix or Don't Fix)...(and possibly your reason for it)

Vote don't fix.

Hi Tina your like me you dont want a messy property, Id go and have a talk with the Renters and find out the codition of the property when they moved in and if they mind the way it is.I wouldnt fix anything unless the renters would take care of it. One has to wonder if you lived there for nine years and they like it there and dont want to move maybe they like it that way.I looked at a property some years ago and it was beyond dirty and this Lady had kids there and the floors were so dirty and bad you mys well of moved out doors on to the lawn it was cleaner.Its got cash flow and that matters, so its your call, wishing the very best, Jim

Normally I want to live in a nice place and others too, but if the tenant is living in filth and doesn't care. Would they care of the cleaned up place? Probably not, so if you are looking for the best return on investment; I'd say no. Course maybe the tenants are just wanting to stay and so just saying what they think you'd like to hear. Maybe they would like an improved space. You'll have to gauge that by talking with them and by just how bad the place is now!

Save the money and do the improvements after this tenant leaves. But you already knew that.

I would leave as-is since you are already getting $1000 per month for that price. I believe you can't beat that and seems that the tenant is happy with the way they live. I would hold it and keep cashing in until they move out. When you flip within 1 year, your income tax will be much much higher than holding it for 1 year. I would strongly suggest to leave as-is. If you change flooring, carpet, etc they will get filthy again, so why putting more money at front if you would be cashing in $1000 per month just by taking possession?

Thanks guys, your time is so appreciated!

A quick tally resulted in:
Fix it- 11
Leave as is- 1

Really good ideas on Lease/op, managing with sight inspections, not opening a can of worms, great ROI now, cash cow.... All good good thoughts.

I did talk with the tenants and there are babies (eek), but I think they just live that way. The head of household is a maintenance man with the ability and access to trade priced parts and carpet cleaning. He could do anything in the house (even if he requested to the landlord to be reimbursed) so I think they would destroy anything new.

So, No! Good answer.
Thank you!

-Tina

Right decisions, leave it as-is until the tenant moves out!

Dont fix it at the moment!!!
~Happy Investing~

I'm sure you meant

Leave as Is - 11
Fix It - 1

Thanks Valerie!

oops

I would agree with Valerie. I would choose to not fix the property until they move out. You will receive the rent up to that point. Tuck the money away until they move out and you will have the repairs all paid for when the time comes.
The current renters are fine with the property the way it is, so why fix what isn’t broken?

Enjoy the Extra Money!!!

If it isn't broken, don't fix it. now if your rents are way down then I would, but it will cost you a couple thousand to fix up the place, the difference in rent will take you a couple of years to re-coupe the cost. At that point you will need to fix it again. Why? If they are threatening to move if I don't fix it then, I may do something. but if he is happy, just collect the money and tell him to have a great day.

Mikessler
Advisor

Hi Mike and Craig,

On this deal the investor couple that was pondering which way to go, decided this wasn't the house for them-- they couldn't see pass the "ugly house" to the excellent return sitting pretty for them, BUT...
another investor was THRILLED to get it with long-term tenant in place! I think I made $3,500 on the flip. So she didn't, but HE did!

Thanks guys.