A dirty job
This is the 2nd house in the series of 3. you can read about the 1st one here.
This rehab is a nightmare. Definitely the worst of all in my entire RE experience
I inherited the tenants and oh boy..i don’t know how they are living in a house like that. it justified their rent of just $500 a month. It needless to say that the previous owner didn’t take care of the property so much.
I decided to bring it back to my standard. I offered cash for key, went through some drama and they are eventually out of the house.
This is by far the most challenging rehab i ever did in my entire 3 years in the business.My rehab cost does not have an estimate to cover the 2 trip to the ER for this house:the black mold in the house make my skin so sick that have to went to the ER during the middle of the night to get some treatment. I returned from the ER only to go back to it a couple weeks later because i fall from a ladder while painting on the chimney and cut open my chin.
My main GC was also sick during this time. I hired a wrong contractor to replace him and the rehab budget went over by 5k. I’m glad that i bought the deal with enough cushion so that when thing like this happen. I am still having positive cash flow But let me tell you, paying an extra 5k..hurt..falling from a ladder and cut the chin open..hurt
Rehab: ~18k
Leased: $1200
ARV: ~105000 (it's exactly the same floor plan with the 1st one but we got a new kitchen for this one). the 1st one rented for $1150
Before: i hope i don’t ruin your lunch/dinner
After