Flipping Houses

Breakdown of a $30k Rental Purchase: Pre-Renovation [Video!]

Expertise: Commercial Real Estate, Personal Finance, Real Estate Marketing, Business Management, Landlording & Rental Properties, Real Estate Investing Basics, Personal Development, Real Estate News & Commentary, Mortgages & Creative Financing
230 Articles Written
pre-renovation

I acquired this deal through a postcard.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

The seller was highly motivated to sell. Unfortunately, they had health issues and could no longer maintain upkeep on the property.

Watch the video to learn more about the pre-renovation phase of this deal!

Pre-Renovation Video Walkthrough

Rehab Plans

The exterior renovations will include a roof replacement, power washing to refresh siding, storm windows installation, landscaping. Interior upgrades will consist of flooring installation, a two-tone paint scheme, a new furnace, kitchen cabinetry reconfiguring, and a bathroom finish-out. I will share the scope of work in next video.

Stay tuned on updates. Happy investing.

 

Any questions about this deal? Do you invest in $30k real estate? Why or why not?

Leave your questions and comments below!

Sterling is an multifamily investor specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling w...
Read more
    Patrick Liska Investor from Verona, New Jersey
    Replied almost 3 years ago
    Sterling, Know you had to put in a hot water heater because the one was gone and you are installing a new furnace. i agree that the roof needed to be replaced, aside from the other work that you are doing there, i feel, no matter where the property is if any of those 3 components are older that 15- 20 years, they should be replaced if you are doing a major renovation like that. new equipment and roof now will save you headaches and money in the long run. just having the piece of mind that the equipment is new and up to date is always good and you know that you will have about 15 years before you have problems and have to fix them or buy new.
    David Carr Investor from Mt. Laurel, New Jersey
    Replied almost 3 years ago
    Sterling, great video! I really like how you explain your plan starting exterior to interior in detail. This property reminds me in some part of my first rental property I rehabbed just in terms of the overall plan how it looked initially. I’m really excited to see how this turns out! Keep up the good work.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you for the kind words. What were your biggest lessons from your first rehab, David?
    Cassidy Burns Real Estate Agent from Washington DC, DC
    Replied almost 3 years ago
    Great Video! Thanks for sharing.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you for the kind words. What was the biggest takeaway for you, Cassidy?
    Aaron Gil Investor from Pasadena, CA
    Replied almost 3 years ago
    Superb video. Looking forward to watching your follow up videos.
    Matt Mainini Rental Property Investor from Santa Cruz, CA
    Replied almost 3 years ago
    Great video, thanks. Where do you find out the rental vs. ownership percentage in your area?
    Richard Potts Investor from Austin, TX
    Replied almost 3 years ago
    Wow. That’s just a fantastic deal you put together. Kudos.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you.
    Glenn Paulson from Woodland Park, New Jersey
    Replied almost 3 years ago
    Sterling, Your approach sounds similar to Morris Invest. My question to you is regarding the neighborhood. Would you consider this home to be in C Class or D Class? Thanks Glenn
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    C neighborhood. The city plans to invest money in this location due to the nearby Children’s Museum. I expect the neighborhood to increase to a C+/B- neighborhood in the next 5-7 years through those improvements. Morris Invest has a turn-key model from my understanding. That is not the model I work under. Hope that helps answer your question, Glenn.
    Glenn Paulson from Woodland Park, New Jersey
    Replied almost 3 years ago
    Thanks Sterling. I appreciate your response and applaud you for your success. I am trying to drill down on which areas of Indy are C and which are D or worse.
    Nate T. Investor from Tempe, Arizona
    Replied almost 3 years ago
    I’m impressed that you can do the roof, furnace, HWH, paint, kitchen cabinets, flooring, and landscaping all for under 20K. Are you doing some work yourself?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    No I do not. The renovations are completed by our construction crew that does quality work at a very affordable rate. We provide them plenty of work in return for their reasonable prices.
    Nathan G. Real Estate Broker from Cody, WY
    Replied almost 3 years ago
    There are many detractors that will say you can’t make money with a $30k pig but I think you’ve got a solid plan. I would like to know how you picked up a property for that price. Was it a foreclosure auction?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    This deal was acquired via postcard.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    The seller was highly motivated and wanted the property gone. Due to this the deal was acquired at a bargain.
    Thomas Christenbury from Pleasant Prairie, Wisconsin
    Replied almost 3 years ago
    Sterling, Great video. How do you know the grading of of a neighborhood? I’m a newbie! I look forward to the next video! Will you be including both the during and post rehab?
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Determining the grade on a neighborhood can be subjective. Here’s some qualities to help formulate a grade. A: Newly built properties. Mainly homeowners in location. B: Slightly older properties in area. People still taking care of their homes. Mostly homeowners. C: Older properties. Likely really could use some work. More renters in setting generally. D: Run down properties in area. Multiple boarded up houses throughout streets. Hope that helps. And yes, I plan to do a post rehab video.
    Jam Jackson from Allen Park, Michigan
    Replied almost 3 years ago
    very nice vid! Thanks!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you so much.
    Ty Little from Spring Lake, North Carolina
    Replied almost 3 years ago
    Great Video. Looking forward to the next one.
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you. What was the biggest takeaway for you?
    Ash Thomas Rental Property Investor from Cincinnati, OH
    Replied almost 3 years ago
    Excellent job Sterling!
    Sterling White Rental Property Investor from Indianapolis, IN
    Replied almost 3 years ago
    Thank you for the kind words.
    Laticia Braxton Real Estate Consultant from Joppa, MD
    Replied almost 3 years ago
    Really enjoyed your video Sterling! That is an amazing deal you found so kudos to you. I am personally searching for something similar and it’s not an easy task in the areas that I am interested. Would you mind sharing your postcard with me?
    Rob Cook from Powell, WY
    Replied almost 3 years ago
    Nice presentation and great deal! Thanks Sterling.