Hey Friends,
Two weeks ago I discussed expanding one’s level of uncertainty.
The idea being, “the more uncertainty you can take, the more opportunity you will have.”
So, I’ve been practicing this very exercise, sitting with various levels of uncertainty, testing my physical and mental strength.
And you know what, thank goodness I did, or I’m not quite sure I’d have made it through this week. 😂
Let me drop a few highlights here:
Flip #1:
After sitting on the market for 4 months, my partner and I decided it was time to move a different direction. Last week, we made the executive decision to part ways with our realtor. It wasn’t an easy decision, but we felt strongly about pivoting our marketing tactics. That said, we pulled the property off the market, made some minor updates to enhance the property’s appeal and are eager to move forward to somewhat of a fresh start. We’ve owned this property for a year now…it’s been nothing but rough.
Flip #2:
Soooo, our contractor went dark; it’s been 7 days since our last communication. With his tools in our property and his car parked in the driveaway, it’s a complete mystery. With half a project complete, and weeks behind schedule, our frustration hit a new level last week. We ultimately decided to change the locks and seek out additional resources to get this project to the finish line. I’ve learned to act when I smell smoke, I no longer wait to see the fire.
Rental #1:
October rent was promised on October 9th…no such luck. When the basement experienced water seepage on October 10th destroying some of our tenant’s personal property, I knew an additional layer of uncertainty was piling on. Desperately seeking a resolution for the needed basement repairs, the chaos mentioned above made the tart text messages from our tenant this week a bit more difficult to respond gracefully. Thankfully, October rent arrived on Tuesday, October 31st. November rent, TBD. Basement repairs, TBD…a work in progress as a result of the disappearing act mentioned above.
Rental #2:
That very same day, Tuesday, October 31st, I had the annual rental inspection scheduled for this property. Now, let me say, I’ve learned to like inspections because it puts a professional eye on my out-of-state rental properties. However, they’re stressful! What might they find?! What additional, unexpected repairs might I have waiting for me on the other side? The city flooded back in September, and while my tenants have not reported any damage, you can’t be so certain that means no damage has been done. I anxiously awaited the results on Tuesday, to learn later that afternoon that the property PASSED. Phew! 😮💨 I talk a lot of smack about this property, but somehow, she’s continues to prove herself as my diamond in the rough. 💎
Rental #3:
Yep, it’s still Tuesday…
I received a call from one of my tenants in the 7-unit insisting their apartment was not heating properly despite the boiler temp having been set for the winter season. A bit irritated, I requested my property manager send a tech out to assess the situation.
Well…let’s just say what unfolded was a hot mess. 🤯
The discovery of leaky boiler pipes led to additional boiler repairs. Cost? $2,600 And it didn’t stop there…
The tech servicing the boiler mentioned he smelled gas and requested that I make an urgent call to Nicor to assess the situation. Well, Nicor came out promptly, and sure enough, discovered numerous gas leaks in the basement.
What happened next?
Nicor shut off the entire gas supply to the 7-unit building with two violations that needed remedying before they’d turn the gas back on.
Outside temperature? 30 degrees… 🥶. My tenants? Not happy… 😡.
To say I felt paralyzed is an understatement.
Long story short(ish), I have an incredible plumber who put his team on the emergency right away. Cost? $7,000…every gas pipe in the basement has now been replaced. Believe it or not, that was the median cost-effective solution. I’ve learned my lesson, the cheapest solution always FAILS.
With the gas back on 72 hours later (yes, 3 days...), the technician from Nicor stated that while the gas was back on, the water heaters wouldn’t light because of their age.
FML.
Again to the rescue came my plumber who headed to the building on a Sunday afternoon to install 2 new 50 gallon water tanks.
Well, almost...
As I’m shopping at Target seeking out Elmer’s glue sticks for my 5 YO, I get a call from my plumber informing me the streets are entirely blocked off to the building. Police cars line the blocks in every direction with canines pacing the streets.
At this point, there’s a spiraling of communication between myself, my plumber, my property manager and the tenants.
One hour later, my PM notifies me that the police reached out him directly to inquire about an individual they believe lives in MY BUILDING.
Within minutes the tenants notify my PM that they are being asked to vacate the building so that their units can be searched. To make matters worse, the police have surrounded the building with AK47s (per the tenants) as a defense to what they anticipate finding in my small apartment building.
If you think I’m kidding at this point, I don’t blame you. But this shit is real my friends.
So, here I am, sitting in my car in a Target parking lot on a Sunday afternoon, Elmer’s glue in tow, thinking,
"WTF is happening in my business?!"
I couldn’t help but shake my head in disbelief of the chaos that touched every single one of my current investments.
Was this a sign to abandon ship?! To go back to work like a normal human being?!
On edge as I meal-prepped at home, I was notified a few hours later that the police had vacated the building.
So, after raiding my tenants’ units, the police didn’t find who they were looking for and went about their merry way. While I’ll admit there was a huge sense of relief, my thoughts remain with the tenants who’ve been without gas for 72 hours, had their possessions ransacked by police looking for who appears to be a very dangerous suspect, and still without hot water.
So, how much uncertainty can I take?
Let me tell you, IT JUST EXPANDED!!
Honestly, I just needed to get that on paper…I’m not sure I have any robust lesson here, but to encourage you test your levels of uncertainty.
Ultimately, flip #1 is going back on market for a fresh start, flip #2 will have a new team of contractors in place within the next few days to wrap up the project, I pray that November rent will be paid timely for rental #1, rental #2 passed the rental inspection (yippee!) and rental #3 has had a major systems “makeover” and doesn’t have any criminals in the building.
So, how much uncertainty can YOU take?
Practice…you never know when life will hit you with a slew of challenges that will try to break you.
As I write this, I’m leaning in on another great piece of advice from my mentor, Ati Grinspun:
“You get dealt the hand that GROWS you.”
God, are you listening? I’m growing, OK?!?!
That’s all I’ve got for today.
Ready to start a fresh week. 😎
Tess
