Dear BP Community,
Due to help and support from this wonderful community I purchased my first real estate investment property. I am now officially a real estate investor and it feels great to take action.
3 br, 1 bath
purchased out of foreclosure for $67,000
estimated rehab costs $30,000
ARV - 185,000
The property needs a new kitchen and bathroom along with other cosmetic repairs around the house.
I am a little late posting on this forum as I bought the property with my partners in May 2015.
I will keep updating this thread with pictures and posts as the work gets done. The current plan is to sell the property upon completion.
Below are pictures of the property before work was started.
@Ben Rutkevitz - Congratulations in taking action with your partners. I know the feeling, yes, it feels good when you accomplish something!
Good luck with your rehab and I am sure you are already set on the next purchase.
Well you bought this house in May and it is now July 16th so we would like to know what progress you made in this one month and half?
How did you arrive at the renovation figure of $30,000?
When was the house built?
What do you estimate the rent for this SF will bring in Strattford?
How much are the taxes? What do you figure your cash flow will be for this house? How did you arrive at the ARV for the house? Another BP person has a house for sale that she renovated in Sratford. How does your house compare to her house, in price and in apperance and in cost of renovation?
What did Zillow say about the house?
thank you @Linval T. , yes, I am actively looking for the next one.
great questions @Barbara G. , I will post updated pictures shortly. The house is nearly complete. As of today we just need to finish up the kitchen and landscaping. My partners and I have an internal debate going on regarding whether we should sell it or rent it.
30k Reno budget came from the contractor. His estimate was 22k and we felt that was too low. With the work that needed to be done we revised the estimate to include some contingencies.
The house was built in 1978
We estimate the rent to be $1,500, which is well above the 1% rule.
Taxes are about $4,000. I am getting pre-qualified for a mortgage after which I will be able to do a detailed cash flow analysis.
The Arv value came from the appraiser ordered by the hard money lender. The lender provided 70% of total cost.
I have not seen the other house in Stratford on BP yet, I will check it out and reply on this thread when I do.
Zillow says the value is 185k.
So there are definite pros and cons about having partners. One of the cons is that you have to compromise and can't do everything you want. It maybe that the numbers make it worthwhile to hold the property and rent it out, but the partner dynamics makes it simpler to sell and move on to the next one.
So Zillow and your independent appraise both agreed that the ARV was $185,000. So that sounds really good. Its not an old house so that's really good.
Are you going to refinance it at lessor cost or are you staying with the finance that you have??
Of course if you just flip it you don't have to do anything else. You have had a wonderful first buy. The other BP person is having trouble selling her house and she says its because the bedrooms are too small.
@Ben Rutkevitz - Congrats on taking action and getting your first deal.
I would suggest you sell it and use the funds to do your own rehab deal or use the funds for a down payment for a cash flowing multi. Good luck with the sale!
hi @Barbara G. , we would refinance the house conventionally if we were going to keep it long term. I saw the other BP member's house. I am hoping that our price level will make it easier to attract more buyers.
Our house is a 3br and 1 bath and the other member's house has 3br and 2 bath. Her price is 250k and we are pricing ours at 179k.
Well it sounds like your house is below the ARV and her house might be above the ARV so I guess you are not going to have any trouble selling it.
As the other BP person suggested the next time you will be able to do it alone and not have a minority opinion to contend with
Below are progress pics of the porch. The porch needed to be redone so that the wooden slats were close enough to meet city regulations. I will post pictures of the rooms, bathroom and kitchen in a following post.
Bathroom and Kitchen pics below.
I have great news! we finished rehabbing the home and put it on the market two weeks ago. We had 6 showings in the first 2 days and got 3 offers! one of them was at full ask at 189k. We are very happy with the results and have hit a home run on our first flip. We were all in for about 110k so the profit on this one is solid. We are looking forward to the next one, ideally it will be a multifamily we can fix and hold. If anyone has properties in mind but not enough capital, let me know and I would consider another JV.
Here are pictures of the house once complete.
@Ben Rutkevitz - That's how it's done! Keep them coming...
thank you so much @Eric Munson
wow what a beautiful home! You did a wonderful job. I'm encouraged. I'm in New Haven CT i will soon be looking for a duplex triplex or four plexes for owner occupancy. It's a little scary but now is the time! Thanks for sharing
@Ben Rutkevitz hello I don't see any contact info of your I would like to accept a joint venture request that you gave me on my post ... Please send a college request
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