When Real Estate Investments Turn Into NightMares

[ad#ad-1] I wasn’t really sure if I was going to write about my Winnipeg real estate because they have basically gone sour, and I realy hate to dwell on the bad decisions that I have made. That being said I am not ashamed as what has happened with my rental properties in Winnipeg, more than I am dissappointed at the outcome.

 I have both properties I own in Winnipeg for sale (duplex & fourplex). As I have blogged about in the past I have numerous problems with my properties, from tenants skipping on the rent to full arson fire in my duplex while the duplex was listed on the market for sale.

Well, after the arson fire it took over 1 month to hear back from the insurance adjustor regarding the extent of the damage, etc.  He finally got back to me about 10 days ago and stated it was $18,000 in damages to the duplex. I have no intention of fixing up the property because for that to happen it will take another 5-6 months, and by then it will be getting cold in Winnipeg and all the real estate buyers will be hibernating. And even if I could get it fixed in a 2 month time frame it still wouldn’t work, why? It seems like the shitbags in Winnipeg have nothing better to do than start arson fires in abandoned homes, break into houses or shoot each other on the damn streets.

My decision is to take a check for the $18,000 in damages and sell the duplex property for cheaper than what I was selling it for $64,000. Here is the problem, if you take a check instead of repairing the property you only get 50% of the value, so 50% of $18,000 gives me $9,000. But wait that’s not the best part, then I have to pay the deductible of $2,500, which leaves me with $6,500.

I bought the Winnipeg duplex for $52,000 and now I am asking for $35,000, because it is half burnt. I will probably get about $32,000, plus the $6,500 check gives me $38,500. So I will loose about $13,500 before lawyer fees, paying the real estate agent his cut and a few other surprises. So I will end up loosing about $16,000 on this deal.

Am I pissed about, yes and no. I am just happy to get rid of the place and get rid of the thought of dealing with this nightmare. Besides, I made huge gains in the places I own here in Vancouver, so if I loose even $30,00 between the duplex and the fourplex then so be it.  Loosing money is all part of the game, ask Donald Trump he lost millions and got it all back and then some.

 Once both places are sold in Winnipeg I plan on buying a condo or 2 here in the next few months and manage them myself (someone I can always trust).

I thought I was doing the right move buying in Winnipeg (cheap prices, low vacancy etc.), but if you have shitty property managers, along with a bad social environment the outcome is what you have just read. Bottom line, I can only really blame myself, and a bunch of random events that I have no control over.

I will chalk this up to experience and move on, I am still going to buy more real estate in Vancouver, NOT Winnipeg. If I didnt buy the places I have here, I would be a couple million less wealthy so who fucking cares if I loose $30,000? Not me, on to the next deal and that’s it. Bada Bing!

PS: My goal is to have $20,000 in rental income per month, right now I’m at $5,000 a month. I am 25% of the way there, not bad if you ask me. Another 10 condos and that will get me right to $20,000 per month in rental income.

Think big, get big results….

2 thoughts on “When Real Estate Investments Turn Into NightMares

  1. Pingback: New West Condos, Here I Come - The Road To Riches |

  2. Pingback: 572/574 Magnus Ave 4Plex Is Finally Gone |

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