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

A great big house (#7)

A great big house (#7)

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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)

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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)

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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)

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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)