Hey all, gotta tell you about my surprise today. We bought a house on 7-29-16 for $34k, finished rehabbing on 9-1-16. Paint, flooring, new interior/exterior doors, water heater, moved washer and dryer out of kitchen and into an actual laundry room, gutted kitchen and bath and put all back new. We put $10k in rehabbing for a total of $44k. Got appraisal back today of $80k!! Will rent for $675/month and mortgage payment will only be approximately $273. Our bank only lets you cash out 75%, but I'm good with that, as the house appraised about $10k more than I thought. Had an open house for potential renters and had an amazing response! We decided on a tenant and they are moving in 9-30-16. Very happy how this one worked out and now onto the next one! Good luck to all!
Congrats on the rehab success. It's always very motivating to hear such stories. What's the built area of the house? Would you mind sharing a breakdown of the costs? It seems like you ran a super tight project.
My partners and I spent around $10k on rehab of a rental we bought last year (1600 sqft) where we replaced all carpet with laminate, painted the whole house interiors - walls and cabinetry, replaced kitchen counter top and lot of miscellaneous items. We did not do a gut job like yours. May be we can learn a couple of lessons from your experience.
Hi@Bharani Kacham , the house is only 864 sq ft. We had a budget of $2k for flooring and ended up only spending $1700. We use vinyl plank in kitchen, bath, and laundry and carpet the rest. We budgeted $2500 for new kitchen cabs and counters(laminate), came in at $1800. Spent $1k on bathroom to include new tub, tile to ceiling in tub area, new vanity, medicine cabinet, drywall, lighting. Spent $2k redoing all plumbing including water heater. $600 on paint, $1200 on interior/ exterior doors and trim. The rest was new ceiling fans, lighting fixtures, door knobs, misc items. It was a tight budget, my wife is my partner and she was really on top of the spending lol
Congratulations! I am hoping to do my first flip in a similar price range that you did. And amazing use of a 10k budget! How many flips have you done so far? How many sq ft is the home you flipped?
Hi@Shenice B. This house is actually a rental. Our first house we bought was a flip, purchased for $35k, put $66k in rehab(took 6 months, complete gut including exterior) sold for $134k. After that house we wanted to get into rentals because our area has a huge demand for rentals, so that's what we focus on now. We currently have 4 rentals in same neighborhood, which is on a growing end of town and 1 rental in a nearby town. We do all the work ourselves with the exception of Hvac and plumber all while holding down full time jobs. Self manage and plan to stay that way. Always on lookout for a good deal too, and if you find one you gotta act quick or it will be gone, we have a lot of investors in my area so you have to act fast lol. Good luck!
House is 864 sq ft. Most houses in this neighborhood are 864-1008. When done right they appraise $80k+, if you can pick them up around $35-$40k and put $10k in them you could make a nice return on a flip.
@Mike Creswell , many thanks for sharing the details. Kudos once again and all the best for your future.
For rentals are you all using a LOC or just using your your cash to put the DP on the home?
Hi@Casanova Brooks we use cash, makes refi process much quicker and easier. Good luck!
@Bharani Kacham thanks a lot and good luck to you!
This is why I love the BRRR! Congrats!
@Thomas Nance thanks a lot! Good luck to you!
@Wells Lange thanks a lot! Good luck to you!
Great numbers; thanks for sharing! Do you have any pics?
Hi@Jen R. , I do but I have to figure out how to get them on here, lol. Will try later today. Good luck to you
@Rashad K. thanks! Good luck to you!
Congratulations! Sounds like a great deal. Jen R. beat me to it. Where are the before and after photos? Those are the 2nd best part of something like this.
@Garry C. Thanks! How do I put pics on here? I'm on my phone most of time on here and haven't been able to figure out how to add pics. Good luck to you!
Hmmm... Not sure what it looks like on the phone, but you should have an 'Image' link down below, just to the left of the 'Post Reply' button. If not, you could also host them somewhere online and then add URL links. However, it would probably be easiest to just do it at a computer, if possible.
@Garry C. Okthanks I will try on computer tonight.
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