What A Condemned House Looks Like Before and After

8 Replies

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. 

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@John Geldert  we buy materials in large bulk, and surplus auctions and that includes my payroll. It does include our material cost and labor. I think windows and siding we got for about 25% of normal cost. It took 2 (good guys) 1 week for about 1800 in payroll.

@Jeremy Tillotson thanks for this! I am always drawn to the sad, condemned houses haha. I would love to see some more pictures as well! We are just finishing up a house that the village was trying to tear down and it is amazing the support and appreciation we have received from the community. It is a tough path to take sometimes but can be such an awesome transformation not only to the house but the neighborhood as well!

Thanks for making Ft. Wayne a better place!  I go there regularly to visit family. One house at a time is the way to do it!  I have a similar situation currently in Indianapolis with a historic home with some real charm.  It will be very popular with the new owner.  All the neighbors are stopping by thanking me daily.  It is satisfying to see the results of making affordable homes for good people.  So what if you make a couple dollars as well!  Fight the good fight....

Just a little constructive criticism. The picture window you put in is way too small for that wall.  Maybe add some shutters to fill out the visual space.  No reason not to add the sizzle to the steak. 

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