Bigger Pockets has been instrumental in helping me get my REI business off the ground. I would have never been able to complete this transaction without the help of the BP community. The seller of this house found me through a cash offer advertisement I had posted on craigslist. I was super scared to buy it after the inspection and I almost let the deal walk. I'll never forget pulling up the carpet and watching bugs and worms scatter! Thankfully I had some great colleagues in my network that encouraged me to move forward.
Here are some quick numbers:
Purchase Price: $10,000 (negotiated down from $15,000 asking)
Closing/Holding Costs: $2500
Projected monthly cashflow (unleveraged): $500/mo for a 12.5% cash return
If all goes to plan, I'll be able to refi after my 6 month seasoning and get all my money back and still cashflow about $266/mo.
I'm happy to share more details if anyone is interested.
I'm so grateful for this community!!! THANK YOU!
WHAT is that third picture with the green and yellow circles?!? @Chris Pohlson
@Mindy Jensen That was the 30 amp electrical box that hadn't been updated since the home was built. You may have noticed the quarter inch thick layer of grease all over it? It used to be housed in the kitchen above the stove. :)
Very nicely done! You rehab looks great and your numbers do too!
What is the rough breakdown of the $35,000 rehab?
@Brendan R. Thank you. I knew someone was going to ask me that! I'm set to break it down with my contractor next week. The major expenses were moving and upgrading the electrical, replacing the subfloor throughout the entire house, replacing windows, plumbing fixes, and replacing drywall throughout the home. I'll report back when I have the exact numbers and let you know.
I thought I was buying bottom of the electrical barrel with my 60-amp. HAHAHA!
Congratulations & well done!
This is impressive! Congratulations to you for going through with the deal. Those numbers look great. I'm eager to see the rehab breakdown.
@Chris Pohlson looks great and congratulations! Can you tell me what you are using for flooring in the kitchen? It really makes the place pop.
Great numbers and rehab! How long did it take?
Nice job! I was thinking a build up of cigarette tar on the fuse box...kitchen grease is even better, more flammable! Congrats on the successful rehab!
Great job. The work you did is what scares me $35,000 isn't bad for upgrading the electrical, replacing the subfloor throughout the entire house, replacing windows, plumbing fixes, and replacing drywall throughout the home. How big is the house? sq ft, Bed/Bath
wow congrats ! very nicely rehabbed.
This is amazing congrats!
Were you present for the entire reno (daily or weekly) or did you do it from afar? How did you ensure your contractor did it the way you wanted? How long did the reno take? How did you find your contractor?
Sorry for all the questions I'm about to make an offer on a BRRRR property but it's a couple hours away and I'm nervous about not being there daily
@David Torres Thank you. We used vinyl throughout the entire home. Not sure the exact specs on it. It wasn't the cheapest or the most expensive. Right in the middle.
@Chris Pohlson It would be wonderful if you can share a link to the calculator or just attach a pdf ...
@Chris Pohlson that electrical box made me laugh out loud. This is a beautiful rehab job. Nicely done.
Man, that's awesome! I'm looking for something similar in Las Vegas but even fixers that can rent out for $800-900 are $50k+ currently.
@Anthony Boreland I visited the property once or twice a week. I put a lot of faith into my contractor and took his advice more often than not since this was my first rodeo. (he owns about 40 units himself).
@David Torres The brand name of the vinyl flooring is Shaw. It was $1.30/sqft.
@Santosh Bhor I would but I'm super cheap and haven't bought a pro membership yet. I'm out of my free calculator attempts. I should probably just pony up.
Awesome job @Chris Pohlson ! This is very inspiring...thanks for sharing! Congratulations! :-)
May we all have Bigger Pockets!
Did you keep the wood paneling in the room in the second picture? @Chris Pohlson
What a facelift. You pulled out the woodburning stove and took down the wall between the kitchen and livingroom, did you? Looks great.
Looks great! Well done.
If you don't mind me asking, how did you fund the project? And did you have a contractor give you a bid before you made the purchase?
Congratulations on your ~30k equity boost. How did you figure the ARV?
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