Newbie: Another Rehab in the Books (With Pics & Numbers)
This is my second rehabbed property, which was just completed today (and listed today). So, the jury is still out on whether or not this can officially be considered a success story. Let me know what you think.
I purchased this duplex in mid-September in a historic district in Harrisburg, PA. Unit #1 was a very large 1 Bed / 1 Bath which the owner just rented out for $775. Unit #2 was a very large (2 floors) 3 bed / 1 bath, which was vacant and needed some work. Current owner was looking to try to get $1,000 for unit #2 if he kept the house. I purchased the house for $119,000.00 with $3,000.00 seller help to offset some closing costs.
I completely updated Unit #2. Also I added an additional bath to make it a 3 Bed / 2 Bath. Each floor in unit #2 has its own bath and very large bedroom.
I am out of pocket $27,000 in rehab costs. Most of that money went to Unit #2, however, some went to exterior common maintenance. I just listed Unit #2 for $1,330.00. So, what do the numbers look like?:
Purchase Price: $119,000.00 ($3,000.00 went to seller assist)
[Potential] Gross Rent Revenue: $2,105.00
PMIT: $909.00
ARV: $170,000.00
Rehab: $27,000.00.