Bedbugs - One Renter Away From Financial Ruin?

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I have a few 6 unit apartment buildings and some single family homes we rent in New England. One property we bought had roaches but was able to get rid of them in 6 months. Have never had any other pests in 5 years.



We have never had bedbugs in any of the units. But, I am scared to death of a new renter or guest bringing them into the buildings. They seem to require really expensive treatments (big money for a 6 unit), lots of logistics for every treatment, and never really are gone. Am sure the other renters in the building would move out if we got them.



This seems like the most threatening thing I have ever faced in real estate. I mangage my own properties and could not imagine the hassle and cost to deal with this.



Has anyone had this bedbug problem come into a multiunit building? How much did it cost you. How to prevent this from happening if possible at all. Or, do you just plan for it happening eventually when someone brings in a used sofa?

Comments(7)

  • curtbixel15th April, 2012

    The bank is called Union Savings Bank. It is located in Columbus Ohio. Not sure about their lending area.

  • commercialking7th June, 2012

    Well, you could bundle the existing 4 into a single commercial loan. The rate is likely to be higher since they cannot sell this into the secondary market. Then, since you would no longer have any FreddieMac loans, you could acquire up to 4 more properties with Freddie and do the same thing again.

  • joel8th June, 2012

    We are refinancing condos and getting a 3 something rate. We have to pay appraisals on two of them, but still, this is a great opportunity to refinance now.

  • curtbixel8th June, 2012

    Joel,

    With whom are you doing your financing. I would like to contact them and look into the possibility of refinancing through them.

  • cjmazur8th June, 2012

    I think the number of loans has changed. This is from the Fannie selling guide. Maybe I am reading too quickly.

    Limits on the Number of Financed Properties
    If the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence,
    there are no limitations on the number of properties that the borrower can currently be financing.
    If the mortgage is secured by a second home or an investment property, the borrower may own or
    be obligated on up to ten financed properties (including his or her principal residence).

    Also, I was told freddie does not originate loans any more. FHA or Fannie. I never understood the purpose of having both fannie and freddie.[ Edited by cjmazur on Date 06/08/2012 ]

  • joel11th June, 2012

    Bank of America. Loan is taking forever to get pushed through though.

  • cjmazur15th June, 2012

    In CA "no students" would be discrimination.

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