Popped my Out-of-state cherry!!! SFH reno rental

15 Replies

We just completed our first out of state rehab which just rented. Heres a extensive summary:


Who: Wife was the "boots on the ground" while Hubby was working overseas and gave decision making and contractor support.

What: We bought a 2,600sqft 4B/1.5ba SFH, full basement, full attic which is 100 years old located an hour away from Cleveland, OH. Purchase was through Homesearch @ $17,000. Home had all new windows, viny sided, newer roof, newer furnace/central air, 100amp service with breaker panel and knob & tube wiring. Located in a small downtown area in a B/C+ neighborhood.

WHY?: We are from California, but we have inlaws in Ohio so after a few trips here in the past I became familiar and comfortable with
the market.


Major lessons learned:
-Become thorough in estimating all repairs according to local cost of work. In order of greater to least id prefer to replace these HVAC, ROOF/FLOORING, KITCHEN, SIDING, Electrical in that order with Electrical being the last thing I would want to upgrade or replace.
-Get a home depot style lockbox with keys at the property ASAP (locksmith can drop it off at time of re-keying)
-Ask and check references for guys doing work for you. Check for criminal history at least!

Most difficult obstacle encountered
-Coordinating work during the ohio winter!!
-Finding handymen, contractors that are Good, reliable cost effective.
-I hired a really good handyman, but he ended up being a heroin addict and ran off with 5k of my money!!!!!!!! 

Tips used from Biggerpockets that did NOT work great for me:
-Walmart brand semi-gloss paint. This stuff was reported to have excellent coverage and cheap. The coverage was terrible and
I wouldnt use again.


Scope of work:

Exterior:
-Reconnect two downspouts
-Re-attached loose gutter to roof facia board
-Demo broken concrete steps in front of house
-Re-key 2 doors

Utilities:
-Pex water supply replacing throughout
-1/4 turn ball valve supply shut off valves throughout
-Replace water faucet braided hose supply lines

Main living areas:
-Replace 5'x10' window in first floor
-Patch a handful of plaster holes

-Replace 2 pocket door faulty hardware
-Replace screens on french doors
-Remove carpet in 6 rooms
-Patch hardwood floors (about 5 patch jobs)
-Re-finish hardwood floors
-Lay ~1200sqft vinyl tiles in entry way, downstairs Bath, hallway, kitchen, living room
-Remove/replace ceiling tiles in living room with drywall.
-Paint 2600sq ft of interior walls including removing wallpaper from 1 room. After this we ended up painting over wallpaper


Kitchen:
-Replace kitchen counters with formica
-Remove/replace ceiling tiles with drywall

Bathrooms:
-R&R 2 Toilets, 2 lights, 2 vents, 2 vanity
-Install tub surround
-Demo tiled ceiling in one bathroom and replace with drywall

-Install glass shower door in one bathroom


Bottom line:
-17k Purchase
-15k Remodel cost
-Rented for $1050 / month. This was the largest SFH rental that i could find in the area, so I priced it higher than the average
SFH rentals.
-House came out significantly above average quality than other rentals in the area.

Heres a few BEFORE pictures, Unfortunately i dont have many

http://s4.postimg.org/z3o4s1fj1/Full_Bath.jpg

2.5 million dollar home on the SF peninsula 

if not more.

Incredible right?

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Originally posted by @Jay Hinrichs :

2.5 million dollar home on the SF peninsula 

if not more.

Incredible right?

Trust me, I wish I lived in this house in the Bay Area!!

Looks great. Smart move on the bathroom, looking to do a pre-fab bathroom unit myself!

I'm shocked you could sell it without replacing the knob & tube. Pls tell me more about why this would be the last repair you'd do.
Originally posted by @Ellie Hanson :
I'm shocked you could sell it without replacing the knob & tube. Pls tell me more about why this would be the last repair you'd do.

Sorry my 1st post was not worded right. I meant to say that buying a large property that requires a full electrical rewire is the most expensive and is something I would not want to have on my rehab list. I would much rather do flooring, roofing, siding..etc. For this type of property it would cost 15k to rewire, so I would rather do a house that has other projects that are less expensive.

For example, here are some typical work prices i'm encountering for a 2400sq ft house. I would prefer to fix plumbing and HVAC issues

-Full electrical rewire including service with gutted house @ 15k

-Hardwood floors and install (low grade wood) @ 10k

-Furnace + Water heater @2.3k

-Drywall material and labor @ 10k

-Plumbing supply replacement and drain refresh @ 3k

-Roof @ <5k

Every market is absolutely different, so you are right that possibly in Oregon and definitely in California a buyer would request wiring to be re-done on a house that wasnt priced accordingly. I can only imagine the look on somebodies face when I told them the foundation is made of limestone!

Originally posted by @Alex M. :
Originally posted by @Ellie Hanson:
I'm shocked you could sell it without replacing the knob & tube. Pls tell me more about why this would be the last repair you'd do.

Sorry my 1st post was not worded right. I meant to say that buying a large property that requires a full electrical rewire is the most expensive and is something I would not want to have on my rehab list. I would much rather do flooring, roofing, siding..etc. For this type of property it would cost 15k to rewire, so I would rather do a house that has other projects that are less expensive.

For example, here are some typical work prices i'm encountering for a 2400sq ft house. I would prefer to fix plumbing and HVAC issues

-Full electrical rewire including service with gutted house @ 15k

-Hardwood floors and install (low grade wood) @ 10k

-Furnace + Water heater @2.3k

-Drywall material and labor @ 10k

-Plumbing supply replacement and drain refresh @ 3k

-Roof @ <5k

Every market is absolutely different, so you are right that possibly in Oregon and definitely in California a buyer would request wiring to be re-done on a house that wasnt priced accordingly. I can only imagine the look on somebodies face when I told them the foundation is made of limestone!

 I love love love doing electrical work.  I'm lucky because we have several licensed electricians who let me help and cut the price way down for us.  I've wired up my own house without an electrician so I feel really comfortable with it.  It helps so much during flipping or rehab to know how to do it so you know if contractors are being honest with you.  For our current home I got a 25k electrical bid and did it all myself (all be it super super slowly) for about 2k in materials.

In clev who did you use for the work?

This is awesome! Congrats. To get a rental at that price, even after the rehab is great. At least for a Bay Area native. Kuddos and I hope to follow in your footsteps

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