A great big house (#7)

A great big house (#7)

DSC_0682 (Medium)

Features

  • Single Family
  • 1600+ Square feet
  • 4 bedrooms 1.5 bathrooms
  • Full basement
  • Multiple sheds
  • Foreclosure listed on MLS

Financials

  • $35,000 purchase price
  • $5,700 rehab cost
  • $480 monthly NOI
  • 14.13% ROI
  • $75,000ARV (~$34,250 in net equity after rehab)

Investment diary

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.

The goal with this one will be to sell the home in 2-3 years to the tenant who currently lives in it for a relatively straightforward $34,000+ profit.

Property photos

A no-rehab duplex (#6)

SAMSUNG SAMSUNG

Features

  • Multi-Family
  • 2800+ Square foot duplex
  • 4 bed + 4 bed units with large 3 car detached garage.
  • Traditional MLS purchase from investor

Financials

  • $39,000 purchase price
  • <$1,500 rehab cost
  • $820 monthly NOI
  • 23.79% ROI
  • $50,000ARV (~$11,000 in net equity after rehab)

If you haven’t registered before, you can use this form to register for the first time, it’s totally free! You MUST refresh page after you have registered and logged in to view the additional content!

Investment diary

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.

Unlike most properties we’ve had, we have had some ongoing maintenance on this property. Alternatively with the ones we fully rehab there is very little ongoing maintenance due to the level of work we invest in them.

Property photos

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)

 

Fleas, blown water lines & a fire (#4)

Fleas, blown water lines & a fire (#4)

DSC_0059 (Small)

Features

  • Single Family
  • 1200+ Square feet
  • 3 bed (Converted from 2br)
  • Foreclosure listed on Auction.com

Financials

  • $25,000 purchase price + $2,500 buyer premium
  • $15,250 rehab cost
  • $480 monthly NOI
  • 14.25% ROI
  • $75,000ARV (~$9,000 in net equity after rehab)

Investment diary

This initially was planned to be a quick rehab with total costs of less than $10,000. It quickly became quite apparent that we had miscalculated the rehab need on the property. The wiring in the home was absolutely terrible and represented a MAJOR fire hazard. In the end we went around $5,000 over budget, then a month after putting a tenant in it had a major water leak that resulted in us spending ~$600 to tear up the sidewalk and replace a underground water line. Additionally after tearing out the ceiling of a room it became appartent that the former owner used something similar to barn siding (which had been burnt severely) to repair a ceiling.

One major value addition to this home was adding a 3rd bedroom on the 1st floor. As it was originally set up it had two living areas. We converted one of the living areas to a formal bedroom by walling it in correctly and adding doors. The cost to do this was a few hundred dollars and allowed us to increase the rent by $100/month.

Overall it’s been a good property for us, but there were many, many , many problems along the way.

  • The main water line to the house blew up not once but twice
  • Our 1st tenant left in October, doing ~$500 in damages to the property
  • Said tenant left a ton of fleas, of which it took us no less than a dozen flea bombs to kill

 

Property pre-rehab photos

Post-Rehab Photos (Look at the kitchen!)

One house, one chicken coop, three incomes (#3)

One house, one chicken coop, three incomes (#3)

dup

Features

  • Multi-Family
  • 1800+ Square foot duplex AND 360sf SFD Home on lot
  • 3 bed + 2 bed + 1 bed
  • Traditional MLS purchase from investor

Financials

[pc-pvt-content allow=”8″ warning=”1″]

  • $67,000 purchase price
  • <$4,000 rehab cost
  • $909 monthly NOI
  • 15.37% ROI
  • $80,000ARV (~$9,000 in net equity after rehab)

[/pc-pvt-content]

If you haven’t registered before, you can use this form to register for the first time, it’s totally free! You MUST refresh page after you have registered and logged in to view the additional content!

Investment diary

This represents the first multi-family property we’ve purchased. This has been one of the best money making properties purchased in 2014. The property consists of one lot with two homes on it. One home being a duplex containing a 3 bedroom unit along with a 2 bedroom unit. The other home is a single-family detached 1 bedroom home that is extraordinarily small. The only rehab done on the property was the small SFD home that we essentially tore down to the studs, put new drywall & insulation in and put upgraded electric baseboard units.

The former owner had a terrible time renting the small SFD out, however had long term tenants in the duplex. After rehabbing the SFD we haven’t had much of a problem renting it out for $350/month. We’d love to have more small units like this one, however it’s very hard to find anything like it in the area.

On a  very funny note, the SFD property in the back (The small one) appears to be a chicken coop. The property had no insulation in and it was terrible as shown by the photo of the wall with shutters (You know, those wood things on your windows?) shoved in between the walls.

Property photos