House #33 closed last week.  We’ve gone really hard after the rehab on this one.  It had some City Code Violations, although the roof looked good from visual inspection, whoever put it on did a terrible job and it leaked substantially.   They also installed new windows and every one of them leaks, so whoever installed those did equally as bad of a job.

This is going to be a rental.  It is a 4/2 and a rental.

Sorry for my lack of posting lately, I have been pre-occupied and trying to get a bunch of work done without going crazy.  Just a short post for today.

So if you have been reading my blog, you realized we had to cancel the contract on the last House #33.  Earlier this week we put a new House #33 under contract.

Last week, I called an REO broker that I have bought a couple houses from for an update and he told me about a new listing he got.  It has a bunch of City Code Violations and the bank has agreed to fix them, to the tune of about $12,000.

We agreed that I would submit an offer and I would take it with the Code Violations.  And I got it for 17,000 less than their listed price .

The follow up paid off, this one is going to stay in our rental pool and is a winner.  It was built in 1980 and is a 4/2, should have great cash-flow.  It does need substantial repairs though.

I guess I haven’t blogged at all about House #33 yet.  We put it under contract last week after having  the listing agent trying to get our offer accepted for almost 4 weeks.  Neither of us were that excited about the house, no garage, flat root in a mediocre area.  As you may have heard, California has been in a huge rain storm over the last 10 days so my partner was at the house and the roof was leaking.  We mentioned this to the agent and she basically said, the bank will do nothing to fix it, so tarp it.  Okay, we can understand that, so we go to tarp it and the electric meter was missing.

This basically means that the cities Code Enforcement Department has requested that Edison removes the meter due to code violations.  The bad news is, this house has an illegal laundry room added to the back and is in overall bad shape.  We were not very excited about having the City do multiple inspections on the property and once they completely sign off on the condition you can get electricity to the site (meaning you have to run on generator or the neighbors power while you’re doing the rehab).

So, not being that excited about the house in the first place, we requested that the meter be returned or we get a discount.  The agent said she would get the meter back on the property as the bank is not willing to provide a discount since we are buying the house “as-is.”  As a side note, when you a buy a house as-is, it means in the condition it currently is, not any possible condition the property could be in.  If it burns down when I am under contract it is the Sellers responsibility to return it the condition it was in when I originally looked at it.

The agent emailed today and said she can not get the meter back and we are going to have to do it. So I said we would like to cancel and this deal is dead .

Oh well…