UPDATED: Pictures of the 28k home people said I couldnt rehab for 5 or 6k

thefed

thefed

Thinks s/he gets paid by the post
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1202 Noble pictures by thefed17 - Photobucket


We did go over that budget by about 2k, but they were all cosmetic updates done to accommodate our tenant...he paid for 1/2 of the updates so it was in our best interest. if he gets financing, it is under contract for full market value...if not, the place looks better than it would've otherwise



scroll thru all the pics (full size) and see the transformation!

jason
 
I am impressed. New floors in the upper level? What is it made of? Laminate?
 
Nice job! Looks like paint and new HW on the cabinets. Beats replacing them in some cases.

Think about carrying a second position for 20% to avoid PMI. This will help him get financing.
 
Quite a transformation!
 
This does look nice. Ever consider doing remodel work on the side? It is crazy how much some people are willing to pay for remodeling work. Not having a GC license may be a hurdle though (unless you have one).
 
thanks for all the positive comments! It feels almost as good as cashing a $40k check when things are said and done a year or 3 down the line....

I have done remodel work on the side in the winter when things are slow...but not any more. I do love to do it, but I have too much going on right now. While the $ is available to keep buying, I would rather rehab a house like this and make $20k+ a few years down the line

The floors are laminate...on sale....for.....drumrollllllll....... $.69/sf! I got underlayment for only $.10/sf. Cheaper than any carpet you can buy...and it really sets it off

tryan: yes...paint and hardware does it every time. even did that in the upper bathroom. we will definately hold a 2nd if need be...but would rather walk away with no strings if possible
 
thefed said:
tryan: yes...paint and hardware does it every time. even did that in the upper bathroom. we will definately hold a 2nd if need be...but would rather walk away with no strings if possible
Click to expand...

If you take a second (or first for that matter), make sure it has a balloon payment in year 3 or year 5 if you just want to get your money out quickly. The buyer can either pay it off quickly or refi it or get a HELOC 3-5 yrs down the road.
 
Looking good. Nice workmanship.

I did a drive by just to check out the place. The picture looks to be pre-thefed. :LOL:

Google Maps

That one you did on Delos looks good too. Took me a while to find it. :greetings10:

Google Maps
 
we will definately hold a 2nd if need be...but would rather walk away with no strings if possible
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As I said on another thread ... PMI is where financed deals are dieing (these insurance companies have been burned pretty badly the last few years).
 
Congratulations. Look like you swung a very good deal. Enjoy your new abode. It look very nice.
 
thefed said:
1202 Noble pictures by thefed17 - Photobucket
We did go over that budget by about 2k, but they were all cosmetic updates done to accommodate our tenant...he paid for 1/2 of the updates so it was in our best interest. if he gets financing, it is under contract for full market value...if not, the place looks better than it would've otherwise

jason
Click to expand...

First, let me congratulate you on the renovation. The house looks great and you will undoubtedly realize a great return on your investment when you sell.

However, I am confused by the title of your post… “Pictures of the 28k home people said I couldnt rehab for 5 or 6k.” By your own admission, you couldn’t complete the renovation for that amount, so those skeptical of your $5000 budget were in fact correct.

According to your post, it appears you spent $8000 and went over your original estimate by 60%, which is a considerable deviation from the initial $5000 budget.

As I mentioned in a response to your initial post, I thought the $5000 budget was optimistic and wondered how you could get the property up to an acceptable standard for tenants. I specifically cited your $20 budget for the bathrooms, saying...
Your prospective tenants must have very low standards if you think this bathroom is "perfect." I'm shocked that all you plan to do this bathroom is paint, caulk and clean before you rent it out.

At the very least, it seems like the medicine cabinet, toilet seat and towel bars should be replaced. It's also hard to beleive that all of the fixtures/faucets are in perfect working order and will need no repair or replacement.
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In fact, you ended up spending several thousand additional dollars on "cosmetic updates done to accommodate our tenant." Judging by the pictures, you ended up doing much more to the bathrooms than just clean/paint/caulk, and instead completed nearly all of the additional renovations I suggested.

Again, you did a great job on the renovation with a very modest budget. But you were WAY off on your initial estimate, which is the only aspect of your project I questioned.
 
Urchina said:
Are those granite countertops in the kitchen, or something else?

Very nice transformation, by the way. Congrats!
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laminate from menard's...total cost about 200 bucks!
 
mattgg1 said:
First, let me congratulate you on the renovation. The house looks great and you will undoubtedly realize a great return on your investment when you sell.

However, I am confused by the title of your post… “Pictures of the 28k home people said I couldnt rehab for 5 or 6k.” By your own admission, you couldn’t complete the renovation for that amount, so those skeptical of your $5000 budget were in fact correct.

According to your post, it appears you spent $8000 and went over your original estimate by 60%, which is a considerable deviation from the initial $5000 budget.

As I mentioned in a response to your initial post, I thought the $5000 budget was optimistic and wondered how you could get the property up to an acceptable standard for tenants. I specifically cited your $20 budget for the bathrooms, saying...
In fact, you ended up spending several thousand additional dollars on "cosmetic updates done to accommodate our tenant." Judging by the pictures, you ended up doing much more to the bathrooms than just clean/paint/caulk, and instead completed nearly all of the additional renovations I suggested.

Again, you did a great job on the renovation with a very modest budget. But you were WAY off on your initial estimate, which is the only aspect of your project I questioned.
Click to expand...


If I stuck with the original plan, we'd have been right on the money. But as mentioned, we signed a lease option with a guy willing to split any additional repairs 50/50. Why would we not do this? So we replaced 4 extra doors, added a new vanity top in both baths, upgraded to better faucets and fixtures, added extra shutoffs for plumbing, nicer closet shelving, nicer light fixtures and fans, better carpet, nicer tile, better door handles etc etc.

So if this guy buys the place, we're still ahead of the game by saving realtor commssions and getting full market value. If he does not buy it, we a) are keeping his 2k down payment (which will effectively reduce our additional input above the original 6k to zero) b) have a better house than we would have originally gotten for our 5k of improvements (and 1k of incidentals).

The house could have easily been done for 5k....less actually.....dont forget that i did all the work myself.
 
Livefree said:
It looks great. I need to replace a kitchen floor in my tenants unit and was looking for an affordable alternative to ceramic and linoleum. came across this from home depot..it's called a floating floor and it's strips that connect over your existing floor. No ripping up the old floor, or glue/adhesive etc. It's priced at $199 square foot at my home depot. Anyone use this before?

Trafficmaster Allure Tile, Corfu Resilient Vinyl Plank Flooring (24 Sq. Ft. Per Case) - 21191 at The Home Depot
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Looked at that the other day but went with a very high quality closeout thick sticky tile @ $.69/foot instead. In another place i corrected a tenant's installation of a plastic mock-wood laminate floating floor - at about $20. /25 feet of coverage that is quick and cheap and looks pretty good when properly edged. May start using that in downstairs units vs carpet, though i do wonder how badly tenants can scratch it up.... reminds me of formica.
 
If I stuck with the original plan, we'd have been right on the money. But as mentioned, we signed a lease option with a guy willing to split any additional repairs 50/50.
So if this guy buys the place, we're still ahead of the game by saving realtor commssions and getting full market value. If he does not buy it, we a) are keeping his 2k down payment (which will effectively reduce our additional input above the original 6k to zero) b) have a better house than we would have originally gotten for our 5k of improvements (and 1k of incidentals).
Click to expand...
Your total out of pocket cost for the renovation was $8000, correct? Then the tenant kicked in another $2000 cash for additional improvements, which brought the total rehab amount to $10,000. So this guy gave you a minimum of $4000 in cash up front ($2K improvements, $2K deposit) to rent/lease the house?

So we replaced 4 extra doors, added a new vanity top in both baths, upgraded to better faucets and fixtures, added extra shutoffs for plumbing, nicer closet shelving, nicer light fixtures and fans, better carpet, nicer tile, better door handles etc etc.

The house could have easily been done for 5k....less actually.....dont forget that i did all the work myself.
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I certainly agree that you could have done a rehab for less than $5K. But my point is that a renovation must bring the house up to a certain level/condition to ensure that it is...
- acceptable & appealing to renters/buyers
- allows the property to command prevailing market rental rates
- puts its appraised value in line with other comparable homes that have been updated.

While you can certainly get by with a bare-bones renovation, will anyone be willing to pay you current market rent to live there? It appears you had to perform a substantial amount of additional improvements (which doubled your original budget) to make the property acceptable for this tenant. Fortunately, he was willing to share the cost of making these changes.

Many of the "additional" rehab items listed above seem to be the bare minimum that should be in a newly renovated house to begin with. Your initial plan was to just caulk/paint the bathrooms, which were horribly outdated, well-worn, and appeared non-functional. Unless this place is in the ghetto, there are probably VERY FEW prospective tenants that would have found this acceptable (as you ended up nearly fully rehabbing them).
 
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