What A Condemned House Looks Like Before and After
I have been asked about my comments of buying condemned houses. I thought I would put an example up of a real deal.
House Bought for 8k (actually overpaid but like this neighborhood, and overall numbers worked)
Rehab 10k (my company did the work, which is why I advocate employees are cheaper, another discussion though) All new plumbing, windows, siding, trim work and kitchen, furnace and central air
18k Investment 2 Bedroom 1 Bath (attic could make another bedroom but we didn't)
Rents:$450=$5400 income
(could have gotten $500 but renting to a vet, who was getting back on his feet)
Maintenance:$150 (fully rehabbed, real cost over 2 years now)
Taxes: $60 (all repairs got a tax abatement)
Insurance:$500 (not sure actual cost because a larger policy, should be close)
Vacancy Loss:$0 going on 2 years
Roi= 5400-710=4690/18000= 26% ROI
For those that say this is a war zone there is a college one block from here.
Tenant now has asked to buy house said he will pay 32k
Notice the siding was gone from side of house
Fully Rehabbed
I will have to get some more photos but I had these on my computer and wanted to give people an idea of why we like condemned properties. The neighborhood is better, a deserving person has a very nice place, and we are making a great return.