First Deal Success Story!
Hey BP, Im super excited to share with you my first deal! I'll include as may before and after pictures and I can.My brother and I partnered on the deal and got a standard loan with 20% down. This is a long distance rental.
Our first property was a 2 bed 1 bath in southern Oregon. We bought a home "on the other side of the tracks" that most people wont touch, but in talks with the city the area is having a lot of money put into it. Both my brother and I are electricians and have worked in construction a long time so we didn't have any issues with the rehab. When we purchased the property it could haven been rented out "as is", but we are doing the BRRRR strategy and want to refi now that it's complete and buy a few more in the same neighborhood.
I'm a little late on posting this because of the weather, we first were going to paint in July but its was 105F that day. We did all internal rehabs after purchase in July of 2017, but recently finished up paint a few weeks ago.
Numbers:
Cost:
Asking 115,000
Purchase Price 110,00
ARV 135,000-145,000
Closing Costs 3,600
Rehab costs > 7,000 ( we did most of the work ourselves)
Mortgage 605
Expenses >400
Rent 1,200
Rehab included:
Painting interior- home interior was originally 7 different colors. Not its only 2.
Bathroom- New toilet and Shower has been painted.
Floors- Hardwood refinished, and kitchen lamnit replaced.
Kitchen/Washroom- All cabinets replaced and handles painted. Wall paper removed, refrigerator installed and washroom sink installed/plumbed.
Front yard- Fence installed, walkway laid out and grass redone.
Backyard- Walkway installed, RV parking now has gravel, sprinkler system installed.
Doors- New doors put on front, rear, and garage entrances. Garage also got a new roll up door.
Exterior- Painted and not UGLY 1950's blue anymore.
The southern Oregon market is wonderful, we had this place rented before we were done rehabbing and the tenants offered to double to deposit if they could move in early. We have been fortunate to have a good property manager as well. We have another 3 properties we are looking at but need to work out the funds. If anyone has questions I'd love to answer. This is my first property so I may have left out some information.
I have a lot more photos of the interior but the keep turning sideways when I post them. If anyone knows how to fix that, ill upload more photos.
-Vince Townsend