Thats practically the 3% rule, well done. Is that property in Atlanta or Detroit? How extensive was the rehab - it seems you refinished the floors, what else did you have to do in that $7,000?
Thats practically the 3% rule, well done. Is that property in Atlanta or Detroit? How extensive was the rehab - it seems you refinished the floors, what else did you have to do in that $7,000?
There is a lot of talk about the market slowing etc.. I would say if you buy them like that it does not matter what market your in. as long as you can keep a body in it.
I actually made a mistake, in a very good way............this rehab came in at $5100. I have another 3 rehabs happening at the same time, so I got confused. Its Detroit, B Neighborhood. This property did not hit the market we secured it prior, cash offer.
I have got the rehab costs refined, there are most certainly ways to reduce costs
Here is the list of repairs/rehab
1.Scrape and painting the entire house and repair cracked walls 2. Complete trash out of entire home and garage 3. Back upstairs Porch repaired 4. Paint basement walls and floors 5. Close off outside storm drains 6. Put up backyard fence to separate property 7. Basement stairs repair 8. Plumbing inspection 9. Boiler inspection 10. Electrical inspection 11. Replace tile in kitchen 12. Pull up old carpet 13. Sand and refinish hardwood floors 14. HwT inspection 15. Snake drains 17. Fix broken light fixtures 18. Replace missing glove
Lots of talk about market slowing down??? Yes I hear this, but its really noise to me.
What I am seeing in Detroit is anything but..... however, you must buy the right product, at the right price and then keep your costs down.
I am cash flow positive from day one.
I have a $200,000 income pa from my rentals and just increasing my base. Once you know what to do buy and how to do .... .its just a matter of rinsing and repeating.
I provided no labor, this is the contractors price.
I know hard to believe right..... on average my rehabs in Detroit are costing me anywhere from $3000-6000. This was an expensive one.
I have another that I close on next week I would be expecting $8000. They have already given me an idea and this one needs replacement of window frames. This one will be a potential flip as its in Bagley and end values here are hitting $150,000, I purchased this one for $61,000
@Marisa Rowe
That seems like a great deal especially if it’s a B neighborhood. Is this in the city of Detroit or a suburb . Don’t know much about Detroit but I’ve heard many say the suburbs are better/safer.
You bought it off market for $36k what would the retail or market price be ?
Sounds like you are getting great prices on the rehab work too .
@Marisa Rowe
Oh nice that is a great deal then. Are you doing your own marketing , direct mail etc to find deals? Or going through wholesalers etc ? Are you able to have your team handle a lot of things locally in Detroit or are you there a lot ?
Hi Migeul I get good rates, but I also dont necessarily go new, we go second hand wherever possible, for rentals, massive cost savings. So its not like you are buying off the shelve at Home Depot.
Nice job keeping the cost down. I buy Flops and resell them to other local buy and hold investors. I bought two houses for 50k in August but decided to keep them because they are in B neighborhood. Most Flops I buy and resell are C or D properties so I have no interest in keeping them. Anyway I set my budget on the smaller house at $5k. So your post tells me I'm not crazy after all.
This is my $7000 rehab, I call it my rental rehab not retail rehab where perhaps a higher standard is required when selling.
This home is around 1450 sq ft.
I purchased this for $36,000 and rent is around $950-1000 pm
Well done. Have you seen a demand for more gray tones in your rentals? Couple years ago we switched from a tan look like you have to the grays due to the demand out here.
Your numbers sound terrific. I see that your initial post was about 2 month ago. So it took you about 2 month to get it rented out? Is that about average for your market?
Did you sub-contract yourself, or was there a general contractor involved for the repairs?