Update for 12/27/10

December 27, 2010 · 6 comments

Things have been pretty busy personally (we’re getting ready to have our second baby in a couple weeks), so I haven’t had a lot of time to update the blog, but I wanted to give a general update on the four properties we are currently holding…

House #1: The Corn House

It’s been almost two years now, and we still have our lease purchase tenants in The Corn House. Their option contract was scheduled to expire on December 31, but we just signed an extension through the end of the first quarter of next year (March 31, 2011). Since they pay their rent and option/escrow payments on-time every month, we’re happy to let them maintain their option to purchase for as long as it takes to get their credit in order — as long as they continue to improve their credit as well.

I plan to pull their credit again in January, so we should get a good idea of where they are financially, and will have a good idea of whether they will be able to buy the house in 2011. Based on the last credit pull, they shouldn’t be more than 6 months away.

House #18: The Hassle House

The Hassle House has been rented for about two months now, and while the tenant is somewhat picky and demanding, she’s a good tenant and has paid her rent on-time each of the first two month. In fact, she’s paid by the 1st of the month both times, and both times paid by depositing the rent directly into my bank account, making the process very easy on me.

House #19: The Flood House

The Flood House is still under contract. The buyers had their inspection last week, and we still haven’t gotten any feedback — hopefully we’ll get a copy of the inspection report in the next day or two, and if the buyers are planning to ask for any repairs or additional work, I imagine we’ll hear from them this week — their due diligence period expires on Saturday night at midnight.

We’ve also spoken to the buyer’s mortgage broker — they didn’t want to use ours — and are confident that they should be able to handle the fact that the property will be subject to the 90 Day Rule. It appears the lender — Wells Fargo in this case — has done properties in under 90 days before, so hopefully there won’t be any surprises there.

Also, according to the mortgage broker, the (first) appraisal has been ordered for the property, so we’re hoping to get that done this week as well.

House #20: The Lake House

The Lake House is still sitting about half-staged. We decided to wait until after the new year to list this one for sale, as we don’t expect to get any traffic through there this week and want to get the impact of a new listing once buyers start getting back out there in 2011.

So, we’ll finish the staging at some point this week and put the property on the MLS either next weekend or the beginning of next week.

6 responses to “Update for 12/27/10”

  1. Luis says:

    J and Carol, major congrats on the second baby!!!! I guess one is not enough 🙂 That is awesome, congratulations!

    How do you get your tenant to deposit into your bank account. Does she just go into the bank and deposits int your account or do you have some kind of electronic service set up?

  2. Stefan says:

    Congrats on the baby, I have three boys at home so I know you will be blessed when your second baby arrives.

    Just don’t go for three 😉 two is ok, you can still play man/(wo)man defense, when you get the third and you have to start playing zone, it’s a completely different ballgame

  3. J Scott says:

    Thanks Stefan and Luis…

    Luis – I had a book of deposit slips printed for the account and gave her 12 of them. Each month, she can either go into a branch or go to an after-hours dropbox and just submit the deposit slip with her rent check. The teller will deposit the check into my account.

  4. Dave C says:

    Congrats on the baby! I only found your blog 2 days ago but have been reading nonstop since then! Lots of great info!

    About giving your tenant deposit slips with your account # them? Is that risky?

  5. J Scott says:

    Thanks Dave!

    Pre-printed deposit slips don’t pose any risk (at least from what my banker tells me)…while they have my account number on there, all they can be used for is to make deposits. While the tenant will have my account number, without forging my signature and getting two pieces of ID that says their me, there’s not much to worry about. In fact, if someone wanted to get money out of my account, getting the account number would be the easiest part anyway!

  6. Luis says:

    That has also been my experience. Account numbers are not protected at all and they are easy to find out…

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