A tiny little house (#12)

A tiny little house (#12)

DSC_0001 (Small)

Features

  • Single Family
  • ~900 Square feet
  • 2 bed 1 bath
  • MLS listed foreclosure

Financials

  • $12,750 purchase price
  • ~$10,000 rehab cost
  • $360 monthly NOI
  • 18.9% ROI
  • $40,000ARV ($17,250 in net equity after rehab)

Investment diary

This property is nearing the end of rehabilitation. This was the first property we’ve purchased that has had copper theft/plumbing theft while negotiating. THANKFULLY we had a pre-close property inspection which led us to discover that the plumbing and electrical service had been severely damaged from theft. We were able to negotiate a $2,750 reduction in list price to cover the damaged material.

The scope of work has greatly expanded from the original idea which was not to replace any wiring. Since the lines had been cut everything had to be traced back to the source and it was found the prior owner had used bare wiring to connect some lines together. Thankfully this was discovered and remedied, however makes one think about what could have happened over time had it of not been addressed.

Property photos (Pre-rehab)

Post rehab pre-clean 

 

Our biggest one yet (#11)

Our biggest one yet (#11)

2015-03-05 17.04.39

Features

Financials

  • $20,000 purchase price
  • <$20,000 rehab cost
  • $670 monthly NOI
  • 19.70% ROI
  • $65,000ARV ($25,000 in net equity after rehab)

Investment diary

This one was far more work than we had ever planned. It was slated for starting mid-Feburary with completion of early April as we secured a tenant before we even began rehab.

The two month rehab became a three and a half month rehab once we found out that there was a severe water leak in the roof that kept coming up foiling much of our work. The property also required significant re-wiring due to the dreaded knob-and-tube wiring found inside several rooms.

We went a bit over budget with it, however ended up with a absolutely fantastic home in the end that the renters LOVE.

One thing we did decide on doing with this home was removing the late 19th century oak mantles and replacing them with pine replacements. I hated removing original fixtures but due to the location and the fact it’s a rental we felt that it was most prudent. Had we of stripped out the oak fixtures inside completely (Baseboards, trim, mantles, banisters, ect) we likely could have recovered our entire purchase price on the house. However we opted not to, and just removed 3 of the 5 oak mantels. We expect to recover $3,000 by selling these. 

Property photos

 

2015-11-10 10.44.08 (Medium) 2015-11-10 10.44.20 (Medium) 2015-11-10 10.44.44 (Medium) 2015-11-10 10.45.09 (Medium) 2015-11-10 10.45.14 (Medium) 2015-11-10 10.46.47 (Medium)