Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
I picked up this property for about $33.5k and put about $14,000 into the house. I bought it in mid Feb and have a tenant moving in on Tuesday, April 1 for $1,095. The first tenant who came looked at it put an application and everything came back okay.
The house has new roof, new hot water tank, new flooring and new paint throughout. The biggest expense was the roof.
@Jarrett Harris No, this one is not. This is similar flooring from Menards. The manager at Menards wanted me to try it and gave it to me at a much lower price than Allure flooring.
Hi @Au Dang this was a Fannie Mae property and it originally came on the market at $52,900 in Oct 2013. After some price drops to $38,500, I picked it up around $33.5k.
I am able to get the work done at a really good price because of volume.
For example, my HVAC guy puts the hot water tank for $100, because I am majority of his business. The price includes him picking up the hot water tank and installing. He bills me monthly and has my Menards card for all the materials.
The roofing guy is doing 7-8 roofs for me and I buy the material from Menards and Home Depot, so I get big discounts. The painter is going to be busy for next 3 months or so working on my rehabs, so they give me very good price because I am able to keep them busy.
For carpet, the retail price is $1.25/sq ft and I got it at $0.85/sq ft.
The vanities retail for $125 and I got them at $90.
I was really encouraged by your post. Sometimes the home runs aren't in the most desirable locations, right? Our best property was purchased for 23K, and we put in another 25K to bring it up to code and make it really quite a nice place. Although we had some theft issues during construction (new a/c, materials), when the house was vacant, it was still worth it. I wanted to mention this to affirm that that dream can come true. You're right on the money!
Sometimes I am able to get some good deals because I am willing to take on bigger rehab projects. The more value I am able to add, the better deals I will get.
To this date, my best property has been a 3 unit I bought for $28,000. Needed $7,000. Total investment $35,000. Monthly rent $1,895. Gross return 65% per year.
Here's another one that I purchased couple of weeks ago. The day I closed on this one, I showed it to someone who had been looking for a good 3 bed/2 bath place. The tenants liked quality of our rentals, but wanted something in this particular location, so I showed it to them the day I closed in as-is condition and they filled out application. They got approved and are moving in May 1st.
This one needs a lot of work. New roof going in next week. New kitchen should also go in next week.
The property originally came on the market at $40,000 in August 2013 and after some price drops to $26,000, I offered $20,000 and told my agent to accept any counter the banks comes back at.
I got a pretty good deal on this one, because it was incorrectly listed as 2 bed/1 bath when it's actually 3 bed/2 bath.
Excellent work @Sharad M. . You are a tribute to flippers everywhere. Improving houses, neighborhoods and keeping people employed. I wish you success and more sub 30k finds.