BiggerPockets

BEFORE:

After some cleanup:

After rehab:

Impressive! Must have been a bargain to purchase, and looks like a great find!

Do you mind sharing the numbers? :)

Very nice! Seeing the diamond in the rough is hard to do at times. Great job!

Very impressive. The house looks great! How many dumpsters of trash did you fill? That's about as bad as I've seen.

Originally posted by Mat Lewczenko

Can you give us a brief description of the smell prior to cleanup? I caught myself grimmacing at the pictures without even smelling them.

Really nice job! Not sure I know many people that would tackle this one as their first. Kudos!

That was my first thought too. My smellovision is broken (fortunately).

Very nice rehab. Like everyone else, numbers please!

Nice job.

Good luck with the sale and post those numbers!

The numbers are a little bit confusing because I bought two properties as a package (same seller).

I paid 650k for two properties. You could say 325k each, but on paper it's broken down as 400k and 250k for the seller's tax benefit.

Cost to close: 850k

- 650k purchase price
- 20k "referral fee" to agent (basically a wholesale)
- 33k loan points on 600k hard money
- 7k escrow fees + junk fees
- 140k to hard money lender for rehab control

Holding Costs: 50k

- $6400 payment on 600k hard money loan at 12.75%
- $600 property tax between the two properties.
- $1300/month payment on other private money I borrowed.

That's $8300 x 6 months = 50k.

Additional Rehab: 50k

- Hard money guy held 140k, but it will cost me about 190k total for all the work.

Closing Fees: 50k

- 25k per property. This includes 3% to buyer's agent (roughly 20k), $3,500 to listing agent*, $1500 escrow fees.**

* I'm an agent, so I handle all the work, but I just list it under another agent's name.
** I will ask the buyer to pay all escrow fees.

Total Cost: $1,000,000

- 850k to close
- 50k in holds
- 50k in additional rehab
- 50k in selling fees

I'm looking to sell the properties for a combined $1,250,000. That'll leave me with a profit of 250k, give or take 20-30k.

Also, I didn't include insurance costs because that's a part of my rehab costs. I'm spending 190k on rehab, but that includes insurance.

Wow! Thanks for the summary. It still blows me away when I hear the numbers out there in the Bay Area.
Best of luck on a quick sale.
Thanks again.