Mr. Little's Going A Long Way and Other News about Our Home in Grayson Valley

Mr. Little gave his notice today. I knew it was coming from our phone call earier this month. But I was hoping when he originally told me he was moving in "March" he meant the end of March. Nope. March 1. 8 a.m.

Just because he really is all kinds of awesome, Mr. Little tells me he has the carpet cleaners scheduled for the end of February. I am guessing he is planning on getting his deposit back: not that there was any question. He is also meeting the handyman out at the house next Monday to fix the roof issue we have out there.

I am sorry to see him go for a myriad of reasons. First, he's a great tenant. But, when you and your bride have lived your entire life in some cold upper Midwestern state and all of your immediate family, friends and life is in the same cold upper Midwestern state, I can see why you might want to go back and freeze your butt off be with the people you love. I don't have a lot of love for Birmingham at the moment, so I can't blame the guy.

Trying to be proactive about this house, I talked to some guy named Jason who sent me a postcard saying he wants to buy my home in Grayson Valley--currently Mr. Little's home. What Jason clarified when we chatted today was that his postcard really meant was he was willing to offer me $50,000 cash for this house. Or, he was willing to take over the payments. Neither option thrilled me. I didn't tell him what my payment was, but I am guessing it wouldn't thrill him either. Jason and I parted friends, with me telling him to keep my number and he laughing politely and probably muttering under his breath about the "crazy and unreasonable Arizona lady."

The good news, is the mortgage company made a big mistake and we just got it remedied. So, now our payment is $150 lower than it was (and what it should have been all along). The money they owe us will be used to pay off the heat pump Jack--before he bailed on us--wanted to buy on credit, thus bettering our cash position. Sort of. I suspect we are going to take a $150 hit on rent as Kirby will probably be managing this and I don't think I can get what I was getting for rent before.

Our next step is looking at refinancing. Banks don't like to refinance empty homes, so we need to get this done before Mr. Little moves out. Or, we need to find someone to buy it from us at a reasonable price. At this moment, either is fine with me.

"Carry On My Wayward Son"

Though there has been plenty of drama in Alabama, I haven't had time to sit long enough to process what has been going on. However, if you heard some sort of grumble by way of Mesa, AZ this morning, it was me swearing at my phone when Mrs. Sherwood texted me at 7:30 today. On Saturday, she texted me at 6:30 a.m.

There has also been a lot going on in baseball news too. I haven't had much time to process that either.

What I have been doing is making the Arizona Department of Real Estate happy by taking my continuing education classes. Last week was a landlord-tenant class. Today I am suffering through Fair Housing.

I would like to tell you I made my real estate client happy last week, but from what she told me in no uncertain circumstances last Friday, I am responsible for all of her poor decisions for the past ten years and it is completely my fault the transaction was going South (because I choose not to pay her bills?). By the way, she finally got her house yesterday.

Anyway, my brother sent this to me. I thought it was pretty cool. (It is sad that Kansas is now Muzak). Happy Wednesday everyone.

Comps Roulette

I ended up getting three sets of comps for my home in Grayson Valley. This was the home Jack owned with the Sunshines up until this past December 31. The home is about 20 years old, brick, three bedroom, two bath, vaulted ceilings, two car garage with a fenced, level back yard. It also backs the Grayson Valley Golf Course, at Grayson Valley Country Club. However, there is foliage in the way, between the back yard and the actual golf course, so the value added for backing the golf course is a wash.

My first set of comps came from Kirby a few weeks ago before Jack left our LLC. He confirmed my gut feel: the house is worth between $125,000 to $135,000. When I offered the house for sale to Mr. Little, my current tenant, he thought that was a fair price too. However, come spring, he is moving back to the Artic tundra the Midwest and doesn't need a fabulous home in Birmingham.

My second set of comps came from Mike, the agent I wrote about last week. I wasn't very comfortable with his level of professionalism and was ready to call it quits before we got started. Marty Sunshine thought otherwise, feeling it was only fair to give him a fighting chance, so I sent him the address of my home. Sadly, this tid-bit of vital information totally confused Mike, because he, for some strange reason, was under the impression I was interested in selling some other random home that I don't own (Yes! There is a home in Birmingham I don't own!). Of course, if he was willing to talk to me last week when I called, he probably woudn't have been so confused. 

Though I had prefaced our e-mail exchange by explaining I was a licensed agent in the state of Arizona, Mike didn't take that to mean I had any indication of what I was talking about. So, his comps were of homes were all over the place. In fact, all but two were in different neighborhoods and were nothing like the twenty year old, three bedroom ranch home I would like to sell. Pleasantly, a few of the homes were in Mrs. Green's neighborhood. So, now I know what I can expect if I sell that one.

The only real useful comp that he gave me was of the four bedroom home directly across the street from my home. It sold recently for $139,000. However, based on Mike's assessment (completely bypassing the fact that only two homes--the ones in the same neighborhood as this one--in his comps were legit and higher than the rest of the gobbledygook he sent), the home would probably sell for about $110,000.

The last set of comps came from a Birmingham Agent on my Facebook Friend's list. She actually got in touch with me about 10 minutes after I contacted her. She was professional and asked relevant questions. She told me this is not a neighborhood she is real familiar with, but her best guess with the information she had was it was worth about $135,000. Personally, I think that is high, as I am not really willing to update my home enough to get $135,000. Nor do I have the money to cover a mortgage payment for three to six months if this house is priced higher. If I sell it, I want it gone.

I did give the third agent a few other items for her to work on (like find me an investor buyer for the home in Leeds). And, if I decide to sell it, I will probably give her first right of refusal. But right now I need to see if there is a possibility to refinance the house. The house has always rented easily, and I have gotten a very good rental price for it. However, rents have gone down since Mr. Little moved in. If I can cash flow and I can keep it for another year, that might be for the best.

The Power of Social Media

The real estate agent I contacted yesterday seemed a bit clueless and did nothing to boost my confidence about his abilities, much less his people skills. After I posted my blog, my e-mail exchanges with him got weirder to the point where I am pretty much done before we go any further. If we were at Starbucks, speed dating I would have pegged him as a stalker living in the basement of his's mother's 1975 house.

Then it occurred to me! I am facebook friends with a real estate agent (whom I have never met) in Birmingham. I contacted her, gave her my info and in no less than 10 minutes, she e-mailed me and gave me a piece of mind.

I already had a backup plan in place if she didn't work out: I was going to try Twitter.

Awkward Options

The big question Marty and I have been debating this week is what to do with the house we owned with Jack. Now that Jack is no longer in the picture, we have options.

One avenue we are exploring is just selling the place. We probably could get slightly more than we paid for it, though with real estate fees, we would probably break even or make a little bit, given Jack gave us his down payment in the dissolution decree. However, it might be the most advantageous of our options.

So, I e-mailed Kirby and asked if he wanted to handle a sale. He said he would, but I would probably hear from him once in a blue moon as he is busy with that whole property management thing and doesn't have time for a sale. It was one of the two e-mails I had sent Kirby that day, and I still haven't gotten a reply from the other e-mail, so I am guessing he being my agent is not a win-win.

I could also ask Jack if he wants to sell it. But that seems awkward. "Hey Jack, want to sell the house you bailed on and be the only one who walks away with cash in your pocket because you will be paid a commission for selling it?"

Instead, I went to the Internet, found someone who is selling a home in the general neighborhood and contacted that guy. I explained I have a home in the neighborhood and am thinking about selling it. What did he think it was worth?

This is really a trick question, because I know what it is worth. I also know I am probably putting in new carpet and doing some painting as well. But, I wanted this guy's opinion just to see how credible he is. Real estate agents who give their sellers some inflated number so they can get the sale always disappoint. I know this. I have lost listings to these types of agents. Over-inflating a home's value does nobody any good in the long run. But, the process does weed out the honest agents from the snake oil sales people.

The agent, Mike, played phone tag this morning with him leaving a message saying hello. My return call to him was simply to request he call me to discuss my situation, as I saw no reason to go into the long-winded details in a voice mail. When he did return my call, he left a message saying there was no reason to call him back, he would just send over comps later today and we could go from there.

Well, yes there is a reason to talk, I hadn't given him the actual address of my home.

If Mike comes back with comps for the right property I will probably hire him on the spot for showing such initiative and clairvoyance in finding the correct home of mine in question. However, I am thinking right now this is a sign from above that I need to move on.

The House That Jack Bought

Jack, my real estate agent in Birmingham, approached us in 2008 about investing in a few homes together. At the time, it seemed like a reasonable idea. We found a home, bought it with some equity and found a renter. Then we found another tenant. And another. And another. We never found another home.

Last month Jack approached us about selling out his interest in the LLC. Essentially, he was quit-claiming his share of the LLC back to Marty and me. Jack graciously suggested that if he got out we would have "twice the equity." Which is nice and all, but that also leaves us with twice the bills. And, in all fairness, Jack wasn't paying those bills anyway so it isn't as if he was out more than some inconvenience for showing the home and working with a repair person or two. The cash flow position on this property has been so tight that even I am not taking a property management fee for this house.

My feeling is he thinks this home (and subsequently the LLC) is a sinking ship. The Birmingham real estate market is not bouncing back as fast as the Phoenix market. So, I can appreciate his point of view. However, Marty and I wouldn't have made some of the decisions differently if we knew Jack was going to bail. For example, Jack lobbied to put a new heat pump on the home but wanted to do it on credit. Begrudgingly, we finally agreed, and are still paying it off. At the time, I would rather have just paid half and had Jack pay the other half, instead of buying the heat pump on installments. Live and learn.

I am not spewing sour grapes. I happen to like Jack. He tells fascinating stories and has a great business mind. In fact, I have probably communicated with him more in the past month than I have all last year. Much of the talk between us has been about how we enjoy each other's company when I am in town and our mutual interest in writing. I am curious if he will make time to see me next time I show up (which, at this point won't be soon). I guess I will find out later if he meant it or if it was nice words to ease the tension.

Yesterday, Mr. Little, the tenant for this particular home, e-mailed me. There is a leak in the roof. A simple-ish fix that will require a handyman. I asked Mr. Little if he might have an interest in buying the home. He doesn't. In fact, he gave me a 60 day notice instead. Another challenge for Marty and I to take on.

The home is being transitioned to the LLC Marty and I own by ourselves. We are also looking at changing the mortgage, including fixing the heat pump payment that should never have been bought on credit. Or perhaps we can just sell the darn house and take "twice the equity." That would work too.

Magnatized

Mr. Wonderful is all kinds of awesome. I really believe so, but it is somewhat awkward to be friends with a tenant or even a former tenant. And though I have male friends, I prefer they all are sanctioned by Marty Sunshine.

For those of you needing a back-story. Mr. Wonderful moved into my home last April. He rented out my home in Alabaster after Ms. Shirley left (painting a sample color or three on every wall downstairs). However, Mr. Wonderful didn't care about a little mis-matched paint. He had some place to live. Which was fine by me.

Much to his delight, Mr. Wonderful bought a home last month. It was a dandy of a home and a bargain price too. I know this because Mr. Wonderful talked to me about it. And, he sent me the listing. It really is a nice place. Much nicer than my home in Alabaster. And much, much bigger too.

Buying a home before the lease is up is a bit of a conundrum. You see, Mr. Wonderful is on the hook for the remaining money. He knows this. I know this. Fortunately, he is (so far) paying his fair share. He is also frantically helping me find a tenant.

On Wednesday he called with a lead. One of his clients needs a short-term lease. If I were to agree, his client would be in as soon as possible and be out by summer--just in time for renting season. And, by the way, Mr. Wonderful had given this guy my name and e-mail address.

So, what did I think?

I think this might work out. Though I loathe short-term leases, exceptions can be made for the right person. So, when the new guy e-mailed me, I explained the rent is higher on a short-term lease and I wasn't painting the patchwork quilt walls either. And please contact Kirby. Of course, if forced, I will paint the mis-matched walls. But if I don't have to do it just now, that's fine by me.

Meanwhile, something tells me Mr. Wonderful isn't going away. He recently expressed his disappointment that I didn't contact him last time I was in town. He has told me when I am next in town to let him know so he can show off his new home to me. I currently have no plans of stepping foot in Alabama any time soon. But perhaps by the time I do, Mr. Wonderful will have found a new Divorced Dad Magnet.

Let's Move On, Shall We?

My loyalties to Alabama football is solely built on self preservation. But please! Don't tell the gang down South.

On Tuesday, I heard from three folks, all independent of each other, who wanted to revel in Alabama's obscene 42 to 14 victory. One person texted me and said, "God was merciful, only making the quarters last 15 minutes."

Another sent me a text saying, "What a great game! You weren't rooting for the Irish were you?"

Yea, like I would admit it to these folks if I actually had a college football allegiance to someone other than the Tide.

Mellowing Out

Days until pitchers and catchers report: 35. Oh come on! You were secretly wanting to know.

I have spent the last week fulfilling my 2012 resolution: clean out my office. After a coat of paint (butter cream), it looks pretty wonderful right now. I tried to post pictures, but my aptitude for technology is akin to my aptitude for belly dancing and pole vaulting.

My office has been the source of a lot of stress over the years. And--dare I say it--there may be something to the whole Feng Shui thing. Paper paralyzes me. Overwhelmed, paper stacks up around me, waiting until I have the stamina to file. I am told it is psychosomatic by a pedantic someone who doesn't appreciate my overwhelm for the true handicap that it is, and instead finds my inability to handle paper as contributing to clutter.

Even after I took out the piles of paper (which are now sitting in the garage still waiting to be filed), I found other aspects a bit disheartening. My office represents a different time in my life. For example, I found brochures and marketing paraphernalia that was once used in our Accidental Business. There was a time when I had so many applications for rental homes that I sent out postcards, telling applicants I would let them know when capital became available. I found some of those postcards.

I found a lot of things that were once used when we were growing. We aren't growing any more.

Somewhere in time gone by--I realize now--I mistook "not growing" for "not thriving." Our company is no longer in the toddler years, needing constant attention. When I read back to my blog posts from years gone by, I am astounded by how much time was taken up by little things. When did I find time for anything else? No wonder we stopped growing! I didn't have time to manage and grow (and the housing collapse didn't help either).

If our business were human, it would be fair to say we are no longer in our early years. It has successfully transitioned into the mellowed existence of young adulthood. We no longer need the daily hand-holding, but instead need the philosophical conversations and the examination of values to help us blossom into full-blown maturity.

We have some of the daily issues still taunting us: vacancies (two right now), late rents and crazy people. That probably is standard with all rentals. The big picture isn't changing too much either: pay the bills, grow the equity. But I hadn't sat back until this week and realized my Accidental Business has grown. It is a constant changing entity that doesn't need the myopic management it received before.

I didn't realize how grateful I was for this transition until now. It is time to move on. My business did this years ago. I am just now catching up.

That Time Of Year

I would be remiss if I did not direct your attention--once again--to the fact that Alabama (State? University?) is playing in the College Super Bowl (or whatever they call it) today.

I can guarantee there is no reason to call anyone in Birmingham today, as they are getting ready for the big game. Tomorrow they will be hung over from celebrating. Celebrating is what I am expecting, as I have yet to see this team loose a bowl game. And if they do loose, I am certainly not calling anyone tomorrow!

Roll Tide, Y'all.

On a separate note, Diamond Jim's Oregon Ducks won last week. I thought I should mention that for equal time.

On a last, and possibly most important note: baseball season is right around the corner.