Julie: My Real Estate Story - Part 2

As you may remember, I decided to post my Real Estate story as a mini-series. With that in mind, here is the continuation of last weeks instalment.  

Part 2

I remember it like yesterday, standing in a pink dress with my six-month old baby girl on my hip, armed with a document that I was bound and determined to deliver to the tenants personally. The document stated that anyone conducting criminal activity was going to have the police called and eviction proceedings would begin immediately. While drafting that document I was acutely aware that you can’t back a rabid animal into a corner without giving them an exit. So the document went on to say that if they left the premises with all their belongings within the next 24 hours that I would not hold them to the lease that they signed with the original owner.

The next day I arrived, and there I was with now a nearly vacant building. Three of the four tenants had left with all their things, and kindly left the keys in the mailbox just as I had asked.  Surprisingly, this included the 300 pound prostitute on the second floor who was nice enough to leave her tools of the trade in her apartment for me to clean up.  First, I felt joy.  Then, it donned on me.  I have two babies under the age of two, and the only rental income that I would now be collecting was Bob’s $350 per month for the entire building. Not good.

So I made lemonade, using those lemons I was just handed, and we started renovating. I put together a design plan with a mix of samples and colour chips to show prospective tenants what the units were going to look like in a few weeks. The plan was to install high-end laminate flooring throughout, paint the cabinetry, change the knobs, touch up the bathrooms and paint the entire apartment a nice neutral, trendy color like I had done when I was flipping homes. I placed an ad on Kijiji advertising a newly renovated apartment available the following month and that there would be an open house the following Tuesday night. I had a number of groups through. The place was a disaster and mid-renovation, BUT I had my samples and a sales pitch all ready. As it turns out, I had more than one group who was willing to sign a lease and managed to create a bidding war where I got more monthly rent, and the winning tenant paid rent on the unit the month that I was renovating it so he wouldn’t miss out on the apartment. I proceeded to pull off the very same deal with the balance of the three available units and didn’t lose a dime of rent while I renovated for nearly 4 weeks straight.