This stuff is “old” to you experienced rehabbers, and real estate investors, but this was a new experience to me. I thought I might share my results with everyone though.
As I mentioned in a previous post, I purchased a 2/2 home for $0.49 on the dollar. This place needed LOTS of work — it was ugly and trashed. In the last 6-7 years it was occupied for only about 2 months…ugh. However I got a deal on it, and within 3 weeks of closing (though my offer AND $500 escrow were accepted months ago), I’m all done. It should rent for 3% of my total invested basis per month, on the low end, per market comps.
Also note that after reading books such as “Flip”, and taking the time to learn what things cost at my local suppliers, I was able to estimate almost to within $100 of my $3000 budget to remodel this place. I came in UNDER budget. And it was just $3 grand. Cool, eh? LOL.
Here is what happened/took place in my first experience, though note the items below did not happen sequentially as listed:
- Demo’d out hideous looking carpet, linoleum, tackboard, etc
- All new paint — every square inch of the place including the ceilings, molding, etc
- All new faux wood flooring
- All new miniblinds
- A new dishwasher, and a used but nice refrigerator, stove and garbage disposal
- A refurbished A/C compressor (note the previous one was stolen years ago) and a custom welded metal cage to go around it
- All new interior & exterior doorknobs and deadbolts
- A few new light fixtures
- One new sink
- All new outlet/switch/phone/cable covers
- Repairs to 5 different pipes that leaked
- Several repairs to 2 toilets
- Dyed carpet on the stairs to almost new condition; luckily I could save that carpet and the carpet inside of the closets
- Repaired/textured/painted giant (in excess of 2 square feet each) a total of four holes in the ceiling and walls; I learned how to do drywall! It’s simple.
- New weatherstripping around doors
- Repairs to the electrical box outside
- Cleaning, cleaning - and did I say cleaning?
I did this in probably 40 hours of my total time, with the help of some contractors and my wife of course.
In the meantime I had the lease drawn up, insurance put in place and transferred the property from my name to my new holding company’s name (an LLC).
I learned alot — and it was a good experience. It was hard work, but I loved every minute of it. I think I was born to be a real estate investor and someday a developer. I can’t wait for the day I can sell my existing business and move into real estate full time. It’ll happen within 5 years.
WHAT IS NEXT?
Well - I stuck a For Rent sign in the window and got 3 calls in 2 days. I am going to start returning the calls on Monday and I’m going to get this place leased out.
Then I’m going to go out and buy up to 5 more of these babies right away — WITH MY OWN CASH!! Now is the best buying opportunity EVER!!!
Have a great day my real estate investor friends!