HELP! Closed on vacant/REO house-need ideas-what to do 1st-w/Pics

HELP! Closed on vacant/REO house-need ideas-what to do 1st-w/Pics

Rental Property Investor · Western Slope CO · Member since 2016 · 58 posts · 24 votes

Hi BP crowd- we just closed on a house through Auction.com-first of all, that process was seamless and fairly quick. We're not sure about our plans for the house- I'm going to live there during reno- we live in aspen and I'm sick of the long winters & short summers. I work remotely and my job allows me to live in one of four counties in CO. We took a HELOC out and my plan is to fix this up and refinance with mortgage to pay back HELOC. We have about $10k for reno, which doesn't seem like much at this point! We didn't get the house inspected, we spoke with neighbors who knew previous owners and the house had also been winterized and gas/electric on all winter. It's a 1700 sq ft modular on a foundation, has a crawl space- it sits on 3/4 of an acre in a small subdivision of seven homes. (Yard irrigation is free through the town.) It has a huge garage, size of a four car garage with opener and large window, also nice big storage shed. Fenced yard with dog run and kennel area. The wife died in 2012 & the widower lived there until fall of 2016, then his children moved him back to MO. The house is dirty, carpet stained from dogs but no pee smell just old & dirty. Appliances work but are 15 yr old white so they're gone. It has a giant master bedroom and huge master bath-modular's have good floor plans! On other side of house there are two additional bedrooms and full bath. There's a picture window off of dining room which I hope to change to doors that lead to a deck- the views are beautiful and there's a large back yard. I also want to do a deck off the front of the house to dress it up. As you walk in thru the front door there is a wall that separates the kitchen and living room- it has those cut outs in it for an old style TV- I'd like to put a gas fireplace there. I think the kitchen cupboards are fine but maybe I paint them white? Definitely new stainless appliances and new flooring throughout. We already have 1000 sq ft vinyl plank flooring-a man bought too much and sold $2100 worth for $600 to get it out of his garage. The tubs and showers are cheap plastic or fiberglass- I think they need to be replaced, along with all of the bathroom fixtures- I'm hoping to keep the vanities, which match the kitchen but put a new top on them. I've been seeing that travertine flooring is good for bathrooms? I also need to replace the window screens-my husband says I should do this myself and I say no way. Need new front/back doors and many of the interior doors are missing. For the outside I'm thinking stucco and fake (nice) rock on the front and hopefully just replacing the bad portions of siding rather than redoing it all. We're crawling under the house today because there's rust and plastic down there- it may just be from the leaky hot water heater or??? Cross your fingers. Here are some pictures- any other ideas/thoughts?

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Greg H.Pro Member
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
9y

Here is what I would do with a 10K budget:

-Make sure all mechanicals are in working order

-****Very important**** Make sure they are no stains in the subfloor when you pull up the old flooring. I know you mentioned no smell of pee but it has not been hot up that way yet.  Once the summer heat kicks in, the smell will become more obvious.  You might want to paint the subfloor with kilz to seal in any odors

-Install new flooring.  Vinyl plank or laminate is the best for a rental as tile would need backerboard

-Paint the interior and exterior

-Install a backsplash to spruce up the kitchen

-Since it has been sitting, I would replace all the faucets

-Freshen up the exterior with some landscaping

-New Appliances

-Save back some funds for the "unexpected"

Good Luck !

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  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    @Brenda B.

    On the surface, it looks okay. Have you turned on the water and heat yet? Do you know if things are working/survived the winter?

    As a rental, a dash of paint and carpet cleaning and it's good to go. If you want to live there, house hack and eventually sell it, you should get a feel for what the area homes look like. Obviously, landscaping needs work, the kitchen and the bathrooms could use some updating. Carpet vs. hardwood floors... It all really depends on the homes in the area.

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    Well, you've got cabinets mounted on the floor and ... no wait - the pictures are in the wrong orientation. Sorry, my mistake.

    Well, learn-by-doing is always the hardest and most expensive, but it looks like you've got a fair starting point. I'm just wondering why the siding is damaged near the surface of the ground. Maybe someone was blowing snow at the house or something.

  • Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
    9y

    I agree with Christopher.  Get the power and water turned on first to check for leaks and power problems.  Next I would secure the house (doors, windows, etc) for security and prying eyes.  I always cover all my windows with inexpensive window treatments for privacy and give the illusion of someone living there.  Depending on the area you may want an inexpensive security system installed for when you are not there.  If you plan on living there I would clean and paint one bedroom, one bathroom and make the kitchen functional and you are ready to move in.  Depending on your plan for re-no I would do the demo before moving in and you are ready to go.  My preference always is to complete all the inside first before doing anything outside.  Looks like a great start for you and I wish you the best.  

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    9y

    Here is what I would do with a 10K budget:

    -Make sure all mechanicals are in working order

    -****Very important**** Make sure they are no stains in the subfloor when you pull up the old flooring. I know you mentioned no smell of pee but it has not been hot up that way yet.  Once the summer heat kicks in, the smell will become more obvious.  You might want to paint the subfloor with kilz to seal in any odors

    -Install new flooring.  Vinyl plank or laminate is the best for a rental as tile would need backerboard

    -Paint the interior and exterior

    -Install a backsplash to spruce up the kitchen

    -Since it has been sitting, I would replace all the faucets

    -Freshen up the exterior with some landscaping

    -New Appliances

    -Save back some funds for the "unexpected"

    Good Luck !

  • Property Manager · Boston, MA · Member since 2014 · 194 posts · 73 votes
    9y

    wish my prerehabs looked like this. Fresh paint new wood floors and some grass landscaping. Good to go but if it's a live in flip. It gets interesting. Send pics of the after 

  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Brenda B.,

    If the water and power are off *** DO NOT *** have them turned back on BEFORE you test the systems!

    Water System: Apply air pressure to see if the system holds pressure with all the valves closed. Sure beats having Niagra Falls indoors!

    Electrical System: Get a professional. Electricity is deadly - no second chances here.

  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y

    @Brenda B. 10K is not a lot of budget so you're definitely going to have to use a lot of elbow grease.  It looks like pretty good condition though.  I wouldn't do too much demo or get rid of the appliances until you're sure how far your budget will go.  

  • Rental Property Investor · Western Slope CO · Member since 2016 · 58 posts · 24 votes
    9y

    Thank you all so much! I posted this from my iPhone and didn't realize that many of the pics were sideways! @Kuba F. @Christopher Phillips @David Dachtera @Charlie DiLisio @Greg H. All of your advice/information was super helpful- to answer a couple of your questions- the good news is that the gas/electric was left on all winter & the water had been shut off and the home had been winterized. The water was turned back on a couple of days ago and everything worked fine- no leaks. The siding is warping d/t sun exposure and water coming from the neighbor who is more uphill to the right- There is a very high water table and due to the way the water drains downhill, our house got water under and around it. Thankfully, my brother owns an excavating business and he'll be doing significant dirt work to alleviate this issue-he said that since the water would come and go and dried in between rainstorms that there is no significant water damage to the house or foundation, but the siding all around has taken a hit. He'll also be fixing the big driveway and re-graveling, which fits with this neighborhood. We're excited to get going on this and I'll definitely post pictures after! Thank you all again!  

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    9y

    @Brenda B.

    Sounds like a great deal. Aspen is a lovely area.

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