2nd Buy and Hold Rehab - Kennesaw, GA
We closed on our second buy and hold this past Monday, December 29. Here are the vitals:
4/2 split level, single car garage, 1968 sq. ft.
Purchase price: $87,000 (all cash)
Closing Costs: $1,000
Estimated Rehab Cost: $18,000 (base estimate plus 20% contingency)
ARV: $125K - $130K
Estimated Rent based on Rental Comps: $1,100 - $1,150
Numbers are very similar to our first property that we purchased in November, with the purchase price $5K less but the rehab cost $5K - $7K more.
We found this property on the MLS. We made our offer the day after it came on the market. Asking price was $100K, we offered $85K with 7-day DD and quick closing. They countered at $95K and we ended up settling on $90K, but after the inspection we asked for concessions because of the needed roof replacement, so the final purchase price was $87K. There was a competing cash offer of $95K but the buyer was unable to show proof of funds immediately so they went with our offer.
Here are pics. I'll update as we go.
Exterior: Replace roof, repair exterior siding/trim and paint, replace front stairs, replace front porch railing, repair front porch deck and replace garage door (and trim those bushes so the front porch isn't hidden). Exterior paint color: SW Keystone Grey. Thinking of painting the door red??
Living Room: Replace ceiling fan, remove ugly white trim above fireplace, install laminate (using laminate throughout house except for kitchen and bathrooms). Big plus - the entire interior, including trim and doors, was just painted by previous owner so there will be minimal interior painting required.
View from LR. Dining area on the left. Sorry the picture is blurry. I was holding my dog while taking pictures so quality isn't the best :)
Kitchen: Remove (decorative???) posts on left and right and cut back half wall at entrance to kitchen to open things up a little. Paint cabinets (white?), update hardware, install vinyl tile flooring, install laminate countertops and possibly tile backsplash. Replace light fixture.
3 upper level bedrooms. Install laminate, replace ceiling fans.
Hall bath: Replace Vanity top, paint vanity base, frame mirror, replace toilet, update vanity hardware, faucet and light fixture and install vinyl tile flooring.
Master bath: replace vanity, replace toilet, install vinyl tile flooring, update light fixture, frame mirror.
Lower level bedroom: possibly replace ceiling fan. No other plans for this room.
Garage: Small drywall repair, paint garage interior, install electrical outlet on ceiling for garage door opener. One negative to this house - W/D hookup is in the garage. Has anyone found this to be a big issue with tenants?
Deck: Paint and replace a few boards.
Estimated completion date - end of January.