My 3500 Property that no one else wanted! Before and After!
So i bought this home as a foreclosure, termites, rot, holes in the roof...I bought it for 3500! I actually fell through the floor in the bathroom during the final walk through before closing. I put 25000 into the rehab of this home and replaced most of the floor joists in the kitchen and bathroom as well as sub floors and floor coverings. I just wanted to share my handy work! Time frame was 6 weeks mostly because I only had 1 helper on the job until I pulled my property managers team in also to finish up. Its on the market now to be rented and hoping to get 600 a month. I financed it with a local bank and pulled 23k back out and it should net me 190 a month. Just wanted to share!
Nice....
excellent job, kyle. i have done similar deals here in the buffalo, ny area. i actually bought one house from a tax repossession deal for $500. yes, that was $500. i put about $5000 into it and rented it for 6 years, on and off, then sold it for $10,000. not a huge profit, really, but i made my money back in rental anyway. i have bought a few around here for prices ranging from $1700 to $4100, rehabbed them and then sold them for a profit. money can be made on a smaller scale too. you don't have to spend the big bucks to come out ahead. i see a lot of people on here buying for hundreds of thousands and making thousands after rehab, and thats great, but for all those people on here who hear that little voice in your head saying " i can't do this, i don't have that kind of money", well, you don't always need that kind of money. congrats to you, kyle, and i am sure we will be hearing from you again in the future
@Mark Elliott Hey Mark! Thanks for the kind words! That's a great deal on your rental, and I agree with you!
@Steve Babiak Hey Steve, Yes the window is on my punch list...Nice eye!!
@Andrew Bondarchuk I bought this property in a downtown part of Dyersburg TN. I had it appraised and the appraiser really kicked me in the teeth on it. She appraised it for 28k which is awful! Its not in the best part of my town but certainly not the worst either. Its located right across the street from the local detective who really keeps this area safe. The house across the street which is only slightly bigger than mine just sold for 48k. My house is 1086 sq feet.
During the renovation process I got several offers to sell the property for 32k-39k which would have been a profit but I have a goal and my wife and I made the decision to purchase until we reached 10k a month and once we get to that level then we will decide if we want to sell but won't sell before that. Currently at 2900 a month and two offers currently out!
Originally posted by @Kyle Penland:
Thanks so much for the kind words! I certainly appreciate it! Its actually a brown on the walls. Also if you look close, you can see instead of using dry wall, I used wood siding for the walls...Makes it really hard for a tenant who has had a bad day to put their fist through the wall.
@Ricardo S. I'll check with my loan and see but I think the reason I can get these kind of terms from my local bank is because I am a known person to them...I have a business account with them, as well as several other accounts. If he is open to other investors with lower loan values, I'll pm you his information.
@Daria B. I'm not too concerned with the white cabinets...They are oil base and pretty easy to clean. I wouldn't put them in my other properties but when I rehabbed this home, I did it to attract someone who might be a long time tenant so I am willing to take the chance on white and worst case scenario paint wise, I'll have to add another coat to the doors.
Thank you, look forward to that
That's unfortunate about the appraisal, but it sounds like you are well on your way to the goal you and your wife worked out. Keep it going!
@Kyle Penland, while it would be nice to buy homes for $3.5k, put $25k into rehabbing them and then be able to get them appraised at $40k+, you cannot always rely on that (as you have discovered). But so long as your $29k outlay is now resulting in positive cash flow - hey, lessons are being learned and money is being made! Keep up the good work...