This week in review – Week #80

This week in review – Week #80

This represents the 80th week that our company has been in operation.

Rehab #12 is finally wrapping up, we are now nearly 2 weeks over schedule. This is solely due to the fact that the electrical system was in significnatly worse shape than was originally estimated. We are not going to be SEVERELY over budget, but will be over budget none the less.

The thing to remember here is that with rentals even over budget, over time is still profitable. With flips some investors start to cut corners and end up with a potentially hazzardous property. That isn’t the case with us, we make sure it’s done RIGHT.

Property #5 is almost done, both sides are having the final work done to them (plumbing) and it’ll be ready to rent. Oddly enough a individual tracked our corporation down, showed up at my house and asked my wife if I would sell the property to him. I’m quite interested in doing that, so we’re meeting next week about it. It would be GREAT if we could sell this one and make a profit, however you never really know what might happen.

This week in review – Week #79

This week in review – Week #79

2015-01-09 09.59.46 (Medium)This ends the week of Jan 9th 2014.

Property #12 is almost done with rehab which is quite important as we’ve already secured a tenant for it.

Normally winter is an extremely hard time of year to find tenants but this one has gone pretty quick. This will put us to 13 of 17 units being occupied. Hopefully in the next week property #5 will have the water mains fixed and we’ll be able to tenant the property quickly. It will take us up to 15 of 17 units occupied, which means the banks SHOULD be happy with our performance :)

Our big struggle still is dealing with banks and finding one that will quickly refinance properties we have. 8 of 12 properties have no loans on them and are owned for cash. You’d think it’d be easy to find a bank that’d lend to a company in such a good cash position, but it’s kind of difficult. We did meet with a new bank this week who seemed quite positive on the situation.

A long-term second duplex (#5)

A long-term second duplex (#5)

DSC_0138 (Small)

Features

  • Multi-Family
  • 3200+ Square foot duplex
  • 3 bed + 3 bed units
  • Traditional MLS purchase from investor

Financials

  • $36,500 purchase price
  • <$10,000 rehab cost
  • $750 monthly NOI
  • 19.33% ROI
  • $70,000ARV (~$23,500 in net equity after rehab)

Investment diary

Unfortunately this property was put on the back burner to work on other properties. Due to this it is still in rehab and is scheduled for completion quite soon. This is due to a very large water leak, very similar to property #4 requiring the sidewalks to be dug up.

We finally did put a temporary tenant in it as of January 2015, to do a transition to property #12 which meets their needs a little better. We do think this will be done and rented out by Feb 1st 2014. A full 10 months after purchase.

Photos (Some pre-rehab and some post)