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)

A quick turnover (#10)

A quick turnover (#10)

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Features

  • Duplex
  • 2100+ Square feet
  • 2 bed + 2 bed units
  • Distressed investor sale on MLS

Financials

  • $30,000 purchase price
  • <$7,500 rehab cost
  • $708 monthly NOI
  • 22..69% ROI
  • $55,000ARV (~$17,500 in net equity after rehab)

 

Investment diary

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.

Even with the unexpected costs we were able to tenant one unit immediately as one unit was in rentable condition at purchase. A little over 2 months into the purchase and the roof is replaced and both units are producing income. We would love to have a dozen of these properties but will take what we can get.

Property photos

More than meets the eye (#9)

More than meets the eye (#9)

 

Features

  • Single Family
  • 1100+ Square feet
  • 3 bed 1 bath
  • FSBO as part of an estate

Financials

  • $35,000 purchase price
  • $11,000 rehab cost
  • $491 monthly NOI
  • 12.83% ROI
  • $70,000ARV (~$24,000 in net equity after rehab)

Investment diary

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.

This proprety is a great example of why you need additional cash reserves just in case of problems. Many of the problems became situations where if neglected they could have become quite hazzardous to the occupants. Now with the problems rectified the tenants are quite happy with their cape cod SFD.

Property photos

Best house on worst block (#8)

Best house on worst block (#8)

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Features

  • Single Family
  • 1100+ Square feet
  • 3 bed (Converted from 2br)
  • Estate/probate sale

Financials

  • $23,000 purchase price
  • $4,870 rehab cost
  • $460 monthly NOI
  • 19.81% ROI
  • $50,000ARV (~$22,130 in net equity after rehab)

Investment diary

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.

The only downside to this one was that it’s a great looking house, in great shape, but in a terrible neighborhood. Outside of the Kitchen the house was in great shape and very well  cared for during the time of the owner’s life. The owner of this property had been there since the early 1960s and lived in it till the time they passed away. Over the time the neighborhood shifted from a relatively nice one to one that was not so nice.

Post-rehab photos

Pre-rehab photos