27520 139th Ct SE, Kent, WA

27520 139th Ct SE, Kent, WA Photograph from September 2012 —  Notice the cracks in the garage door.

Garage Door, Replace

Garage Door, Replace, cracks have gotten worse

Garage door damage

Garage door damage

 

DSC_7157

Extensive moss on roof. I guess the moss never got removed. Recommend cleaning entire roof and gutters. Also remove tree that is up against the house.

 

Bad landscaping design.  Keep the maple tree.  Remove the others.

Bad landscaping design. Keep the maple tree. Remove the others.

Clean the gutters.  Touch up paint where the water has been running down the side of the house.

Clean the gutters. Touch up paint where the water has been running down the side of the house.

 

Door badly scarred.  (It was pretty much that way in 2012, too.)  Door doesn't open and close very well.  Replace door.

Door badly scarred. (It was pretty much that way in 2012, too.) Door doesn’t open and close very well. Replace door.

 

Door

Door, damaged

Mismatched door hardware

Mismatched door hardware

 

Inside of front door.  Very similar to the condition of the door in 2012.

Inside of front door. Very similar to the condition of the door in 2012.  Not much change.

 

We discovered a running water sound coming from this faucet.  We suspect that perhaps there is a leak either within the wall, or in the crawl space.  The surrounding siding and boards are soft and wet.  Probably need to replace that portion of siding

We discovered a running water sound coming from this faucet. We suspect that perhaps there is a leak either within the wall, or in the crawl space. The surrounding siding and boards are soft and wet. Probably need to replace that portion of siding.  Definitely need to fix the plumbing leak.  Use a qualified plumber to repair.  PLEASE NOTE–  We turned off all the water in the house to stop any further damage.  Carolyn did mention that she had someone from the water company come out, not sure when that was.  The person said that if the leak was repaired they would rebate a portion of the water bill.  Might be worth looking into.

Siding's a little soft.  At the back of house, might be able to just patch small area.

Siding’s a little soft. At the back of house, might be able to just patch and caulk a small area.

 

Hole in siding near faucet.  Replace that portion of siding.

Hole in siding near faucet. Replace that portion of siding.

 

Siding is soft from water damage.

Siding is soft from water damage.

Fence is in disrepair and has some dry rot.  Might be an easier fix than it looks, and put some shrubs in front of the fence.

Fence is in disrepair and has some dry rot. Might be an easier fix than it looks, and put some shrubs in front of the fence.

Plastic over patio is very dirty and discolored.  Replace the plastic.

Plastic over patio is very dirty and discolored. Replace the plastic.

 

Crawl space, some evidence of rodents.  Actually went down there to see if there was standing water, but wasn't able to crawl over to that side of the house where the leak was.  A plumber and a home inspector are better suited for that.  Not too concerned about the rodents, but probably will set a few traps just to be sure.

Crawl space, some evidence of rodents. Actually went down there to see if there was standing water, but wasn’t able to crawl over to that side of the house where the leak was. A plumber and a home inspector are better suited for that. Not too concerned about the rodents, but probably will set a few traps just to be sure.

 

Downstairs living room, blinds are broken, replace with inexpensive mini-blinds.

Downstairs living room, blinds are broken, replace with inexpensive mini-blinds.  Carpet dirty.  We did shampoo in August 2012 with our carpet professional, and had limited success.  Flooring needs to be changed.

 

Floor registers old and rusted.  Replace

Floor registers old and rusted. Replace

 

Old and damaged base boards

Old and damaged base boards

Old and discolored baseboards.  Compared a 2012 photo to this one.  Virtually identical.

Old and discolored baseboards. Compared a 2012 photo to this one. Virtually identical.

 

Paint scuffs, damage

Paint scuffs, damage

Discolored paint.  (It's the same as it was in 2012.  I think you mentioned that the tub overflowed with the previous tenant?)

Discolored paint. Does not match the previous paint.  (It’s the same as it was in 2012. I think you mentioned that the tub overflowed with the previous tenant?)

Kitchen, damaged baseboards.

Kitchen, damaged baseboards.

Corner scuff

Corner scuff

 

Damaged baseboards, water damage on floor.

Damaged baseboards, water damage on floor.

 

Damaged baseboards, water damage on floor.

Damaged baseboards, water damage on floor.

 

Water damaged floor

Water damaged floor.  Makes the most sense to replace entire floor.

 

Door, needs to be cleaned or replaced.

Door, needs to be cleaned or replaced.

 

Refrigerator missing a handle and other damage.

Refrigerator missing a handle and other damage.

 

Stove.  Might be able to be cleaned up.  Not sure.

Stove. Might be able to be cleaned up. Not sure.  Don’t have a photo of the dishwasher, but we’ll probably want to replace with a new black or stainless dishwasher.

 

 

Standing water, and water damage under the sink.  Recommend a qualified plumber do the repairs.

Standing water, and water damage under the sink. Recommend a qualified plumber do the repairs.

 

For the most part, the cabinets are in decent shape.  Professional refacing could make them outstanding.

For the most part, the cabinets are in decent shape. Professional refacing could make them outstanding.

 

Microwave is ok, but if we go with stainless steel, we  would replace

Microwave is ok, but if we go with stainless steel, we would replace.

 

Kitchen counters.  Ok condition.

Kitchen counters. Ok condition.

 

Kitchen faucet, extremely loose, replace with a nicer nickel finish faucet.

Kitchen faucet, extremely loose, replace with a nicer nickel finish faucet.

 

Replace blinds.  Back patio door might be fixable, however operates very poorly.

Replace blinds. Slider door needs to be repaired or replaced.  Operates very poorly.

 

Laundry room baseboards.  Floor is ok.  Just need to paint in laundry room and replace or paint baseboards.

Laundry room baseboards. Floor is ok. Just need to paint in laundry room and replace or paint baseboards.

Will put some steel wool or a screen over the dryer vent to keep out the mice.

Will put some steel wool or a screen over the dryer vent to keep out the mice.

Downstairs bath.  Pretty decent condition.  Paint and clean.

Downstairs bath. Pretty decent condition. Paint and clean.

 

Remove garbage.

Remove garbage.

 

Remove garbage.

Remove garbage.

 

Service the furnace.  The water heater stand that Steve fixed seems to be holding ok.

Service the furnace. The water heater stand that Steve fixed seems to be holding ok.

 

More garbage.  Clean

More garbage. Clean

 

Replace handrails.

Replace handrails.

 

Upstairs closet.  Clean.

Upstairs closet. Clean.

 

Remove fan, replace with nice light fixture.

Remove fan, replace with nice light fixture.

Tub is ok.  Clean and fresh caulking.

Tub is ok. Clean and fresh caulking.

 

Caulking needs to be replaced.

Caulking needs to be replaced.

 

Counter is ok, no water damage under sink.  Recommend fresh paint on cabinet.

Counter is ok, no water damage under sink. Recommend fresh paint on cabinet.

 

Light fixtures in master bath are ok.

Light fixtures in master bath are ok.

 

Closet, master bath, paint, replace baseboards.  Possibly replace doors with 6 panel doors.

Closet, master bath, paint, replace baseboards. Possibly replace doors with 6 panel doors.

 

Master bath baseboards.

Master bath baseboards.

 

Master bath, repair hole in wall, paint, 6 panel door.

Master bath, repair hole in wall, paint, 6 panel door.

 

Master bath, patch and paint.

Master bath, patch and paint.

 

Master bedroom door casing.  (Same as in 2012.  Dog damage.)  Replace door

Master bedroom door casing. (Same as in 2012. Dog damage.) Replace door

 

Upstairs fan in hallway.  Seems to run constantly and we can't find a switch that operates.  May need to get an electrician.  Clean

Upstairs fan in hallway. Seems to run constantly and we can’t find a switch that operates. May need to get an electrician. Clean..

 

2nd Bedroom.  Remove wallpaper.  Paint,

2nd Bedroom. Remove wallpaper. Paint,

 

2nd bedroom.  Replacing flooring.

2nd bedroom. Replacing flooring.

 

2nd bedroom closet.  Clean.  Fix or replace doors.

2nd bedroom closet. Clean. Fix or replace doors.

 

2nd upstairs bathroom.  Ok condition.  Floor is ok, no water damage.  Clean and paint.

2nd upstairs bathroom. Ok condition. Floor is ok, no water damage. Clean and paint.

 

Bathtub in 2nd bathroom.  Clean.

Bathtub in 2nd bathroom. Clean.

 

Rust damage on fixtures.  Replace.

Rust damage on fixtures. Replace.

 

3rd bedroom.  Paint, replacing flooring.

3rd bedroom. Paint, replacing flooring.

 

Blinds in 3rd bedroom are damaged.  Replace with mini-blinds.

Blinds in 3rd bedroom are damaged. Replace with mini-blinds.

 

Clean, paint.

Clean, paint.

 

 

 

Hi Sombo,

We would like to propose that we embark on a Joint Venture: fix up the property and sell it to a retail buyer in the spring, and share the profits.  If we put roughly $15,000 into the property (at our expense and under our management), we could probably sell for more than $300,000 in the spring.  Assuming the water damage is minimal, and your mortgage balance is under $220,000, even with realtor commission and closing costs, we should be able to net about $36,000 which we would split.

We are also open to doing a lease option, but again we would only enter into that if we could make the necessary repairs.  Otherwise, we’ll just attract only low-quality tenant-buyers, and we’re not really interested in that.

We have outlined the different proposals below.  It’s OK to say no to us.  Our goal is to make this a win-win for everyone.

A little background:  Before the house was rented out in 2012, you may recall that we felt that the property needed some attention/updating to command top dollar and high quality tenant-buyers.  That situation has not changed.  While the property does not appear to have suffered much additional damage other than general wear and tear, the exception is the water damage, the extent of which is unknown.

Carolyn reports that her water bill went from $50 per month to over $300 per month.  She said had someone from the water company come out, and he said there must be a leak somewhere and if she had it fixed they would credit her a portion of the bill.  It’s worth looking into.

In addition to a leak under the kitchen sink (which has damaged the floors which should be replace – not sure if the subfloor has also been damaged), there also appears to be a leak somewhere near the outdoor faucet in back of the house.  We could hear water running, even though the spigot was turned off.  We have turned off the water inside the house.  If we are to be involved with this property, we want to get a professional plumber out there to assess and repair the leak(s).  Once that is done, we will also get our inspector (at our expense) out there to assess additional damage.

The main unknown is the extent of water damage, and also what is the balance of your mortgage (or how much you need to net.)

As you know, we are coming into the holiday season, which is historically very slow.  Additionally, our schedules are extremely busy for the next couple of months, so the earliest realistic time we can foresee having the property ready to go on the market (for sale or for lease option) is February 1.

Unfortunately, we missed the opportunity to get Carolyn out several months ago so we could rehab and sell during the prime season, and now there is the additional unknown of possible water damage.

No matter what you decide, the garbage in the garage should be removed ASAP as we believe there may be some bags of food and it is starting to smell and may attract vermin.

 

 


 

Kent House Punch List

Here are our repair recommendations to command top dollar (either for sale or for lease option) based on our observations and experience:

 

  1. Fix plumbing (and related issues)
  2. Clean roof
  3. Replace misc. siding, insulation from water damage in back
  4. New front door with sidelight
  5. New garage door
  6. Fix or possibly replace back slider door
  7. Replace plastic awning in back
  8. Interior paint – entire house
  9. New flooring – entire house, except laundry and 2nd upstairs bath
  10. New baseboards – entire house
  11. New interior white six panel doors
  12. Replace stair handrails
  13. Refurbish cabinets
  14. New or gently used appliances
  15. Replace several light fixtures
  16. New blinds downstairs
  17. New bathroom fixtures in 2nd bath upstairs
  18. Landscaping
  19. Staging

 

 


 

 

Proposals for Kent House

 

  • Joint Venture fix up and sell
  • First, must address water/plumbing issues:

i.      We will share costs for plumbing & related repairs up to $1000

ii.      If plumbing and water damage costs are more than $1500 (excluding new flooring in kitchen which we were already planning to do), we’re out.

  1. We estimate approximately $15,000 in repairs (at our cost, see punch list, does not include possible water damage) to command highest sales price (estimate $300,000 if fixed up)
  2. We will manage and pay for all repairs
  3. We will contribute $900 per month towards mortgage payment during rehab and marketing period starting November 15.
  4. Plan to have rehab completed by February 1 and begin marketing
  5. After our expenditures (rehab and contribution to mortgage), the mortgage is paid, and all selling costs have been paid (realtor, excise tax, etc.), we will share in profits from sale
  6. If we do not have a firm qualified offer by March 31, we take off market and Lease Option as outlined below.

 

  • Lease Option
  • First, must address water/plumbing issues:

i.      We will share costs for plumbing & related repairs up to $1000

ii.      If plumbing and water damage costs are more than $1500 (excluding new flooring in kitchen which we were already planning to do), we’re out.

  1. We estimate approximately $15,000 in repairs (at our cost, see punch list, does not include possible water damage) to attract high quality tenant buyer
  2. We will manage and pay for all repairs
  3. Lease Option terms

i.      $1675 per month

ii.      $239,000 purchase price

iii.      Up to 5 year term

iv.      Rent payments from us to you would begin February 1, 2015

v.      You will get rent every month from us, won’t have to deal with tenants

vi.      You’ll get cashed out when the tenant-buyer exercises option

 

  • Straight rental with cleanup only
  1. Minimal additional cash outlay (would still need to address plumbing issue)
  2. Would continue to be a rental
  3. Monthly rental income estimated at $1600?
  4. Continued wear and tear on property
  5. Would require even more $$ when finally ready to sell
  6. We would NOT want to be involved in any way