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