It was obvious to us that this property would be a great money maker, however we were not sure how much of one it would be till we were able to have a full inspection. Unfortunately this wasn’t possible during the bidding phase and we took it as-is. The hope was to get in with less than $2,500 of repairs, however we quickly blew past that when a major roof leak was discovered requiring most of the roof to be replaced.
Sadly, shortly after purchase it became apparent that this property was going to become a money pit and surpass the original estimate of $6,000. It was discovered after purchase that the flooring in the kitchen and bathroom were completely dry-rotted and needed replaced. The heating had to be completely replaced with something safer (And all-new ductwork had to be done) along with ~$500 worth of trash removal in a cellar that wasn’t discovered during original inspection.
Another relatively straightforward rehab. The kitchen had been severely neglected and needed the cabinets & counter tops replaced. Other than this there was a staircase leading to a extraordinarily large attic on the unfinished 2nd floor. We finished about a third of the attic resulting in an additional 3rd bedroom. House was rented very quickly after rehab was done and has been a great property so far.
This rehab was quick, easy and the tenant applications flooded in when we put this on the market due to a severe lack of 4 bedroom properties. Most of the work put in the home was cosmetic only in nature as the house had had the mechanicals updated at one point in the past. These kinds of properties are absolutely fantastic values and attract high quality tenants.
This duplex has been one of the best money makers of 2014. In fact it brought in about 20% of company revenue. It was purchased with tenants in both units and both tenants have continued to live in the house. Unfortunately this property has had low maintenance done to it since purchase, however we do plan on a <$3,000 capital expense during the summer of 2015 to update some needed features with the house and some minor roof work.