Small success story - new rental

Small success story - new rental

Dawn AnastasiPro Member
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes

I brought aboard a new rental property recently (rented for September 1st).  It's a 3 bedroom, 1 bathroom cape cod. The primary reason I purchased this property was the neighborhood.  I really liked how nice it was and I got to know the neighbors and they're really great too.

Purchase price = $31,500

Rehab = $6,000 (approximately)

Work done:

+ Painting all rooms in the house (needed primer to cover ugly colors) + ceilings and trim

+ New rainfall tub/shower faucet + plumbing

+ New ceramic tile tub surround and tile base around the room

+ New toilet

+ New glass block window in the bathroom

+ New windows in the entire house (except for large picture window), double-pane vinyl windows with tinted UV protection

+ Basement laundry tub plumbing repairs

+ New water heater

+ Drywall replacement in upper bedroom around stairwell

+ New outlets and switches in all rooms

+ New light fixtures in two rooms

+ New kitchen floor (sheet vinyl) also used on back hall and stairs to basement

+ Miscellaneous (some new cabinet handles, smoke detectors, CO2 detectors, door knobs, new locks, curtain rods, curtains, light bulbs, grass cutting and gutter cleaning)

Rented out at $875/month + utilities.

The tenant I have is actually one from one of my other rentals.  Her son turned 18 and decided to move out, and so now it's just her and her 2 daughters, and they didn't need all the space of the 4 bedroom place they had been renting (at $1100/month).  The new place is less than a mile away from the old place, so it worked out for her with the move as well.

Some pictures (I'm horrible at picture taking so please don't laugh):

BEDROOM 1

BEDROOM 2 (UPSTAIRS)

BEDROOM 3

KITCHEN

LIVING ROOM

BATHROOM

BACKYARD

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  • Investor · Brooklyn, NY · Member since 2014 · 26 posts · 4 votes
    12y

    @Dawn Anastasi Is $31,500 for a 3 Bed/1 Bath normal in that market? Was this a steal in your opinion?

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    @Isaac Schulman  I wouldn't call it a "steal" per se but I don't think it was that bad, either.  But I know to people in other states it must seem like a real steal as some people cannot get even the "1% rule" where they are from so they think these are amazing.

  • Rental Property Investor · Anchorage, AK · Member since 2014 · 3 posts · 0 votes
    12y

    Beautiful work. I only wish I could purchase SFRs for that price in Alaska. Keep up the good work Dawn.

  • Houston, TX · Member since 2014 · 1 post · 0 votes
    12y

    Great deal. Does your pricing includes Title/closing/inspection and other costs?

  • Realtor · Oklahoma City, OK · Member since 2014 · 57 posts · 9 votes
    12y

    Wow great deal.  I am new to bigger pockets and reading this success story provides a lot of motivation. Keep up the good work.  

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    @Andy B. 

    The closing costs were $371.82.

    The inspection was $250.00.

    Those were not included in the $31,500 purchase price.

  • Brooklyn, NY · Member since 2014 · 11 posts · 2 votes
    12y
    Wow Dawn Anastasi ! You really are an inspiration. I am having such a hard time finding anything! Living in Brooklyn NYC the deals for smaller investors are non existent. Could you recommend some zip codes I should look at in your area for investment? Also how do you get access to the MLS? Thanks!
  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    @Frank Acquafreda my access to the MLS is just through normal websites you find online. I do not have direct MLS access. What I meant when I said I found them on the MLS is just through an online search like everyone else. Anyone could have purchased this property; it just happened to be me.

    Anyone who is thinking of investing out of state needs to make sure they have a good team to support them.  Looking online is one thing but pictures can only tell you so much.  You need to either go to the city in person or have someone or a team of someones assist you with buying, rehabbing, and renting out.

  • Investor · La Habra, CA · Member since 2014 · 38 posts · 6 votes
    12y

    Those pics look great @Dawn Anastasi  Congrats and thanks for sharing. You're inspiring a lot of us on the site. 

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    12y

    Congratulations @Dawn Anastasi ! Those numbers are fantastic! In my neck of the woods, this property would have been in the range of $160K, and rented for about the same, so I am just a tad jealous. Only a bit. Keep it up and thanks for the info. 

  • Investor · Woodstown, NJ · Member since 2014 · 123 posts · 43 votes
    12y

    Very nice @Dawn Anastasi . You continue to be an inspiration to many folks on this site. It really shows with patience and really scouting out an area you can find a niche market and farm it for long term success and profit. 

  • Milwaukee, WI · Member since 2013 · 384 posts · 109 votes
    12y

    Cool - nice work @Dawn Anastasi!

  • Kenneth HynesPro Member
    Rental Property Investor · Easton, PA · Member since 2013 · 359 posts · 92 votes
    12y

    @Dawn Anastasi Looks great Dawn :)  were most of the improvements / rehab forecasted due to your inspection or did you run into any surprises along the way .  Still looks like $6k did alot of good work

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    The windows were the big thing and I knew about those just looking at the property; they were horrible.  I didn't run into any surprises but I did change my mind on a couple things during the rehab (replaced the kitchen floor instead of leaving the old one for example).

  • Real Estate Agent · Portland, OR · Member since 2014 · 74 posts · 37 votes
    12y

    That is am amazing deal and great cash flow. Thank you for sharing these small successes it helps all of us keep our heads up.

    in my area its almost unheard of anything costing less than 100K for similar rents.

  • Philadelphia, PA · Member since 2014 · 43 posts · 3 votes
    12y
    Congrats dawn keep it up
  • Hales Corners, WI · Member since 2013 · 229 posts · 80 votes
    12y

    Wow.  Dawn, I am totally amazed by how far your rehab dollars went!  How do you do it?  I have heard that some flippers can do bathrooms, etc, very inexpensively, and I guess I don't know where to find the reasonable contractors or materials.  I am so impressed!

    And you got it done in 2.5 weeks -- double wow.  Congratulations and bravo!

    Karen

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y

    I generally buy my own materials so that I don't pay a contractor's markup.  The exceptions would be things that I can't fit in my car such as drywall, doors, etc.

    This allows me to buy things on sale and clearance instead of the contractor picking any retail priced item off the shelf.

  • Rental Property Investor · Seattle, WA · Member since 2014 · 149 posts · 58 votes
    12y

    @Dawn Anastasi Congrats and thank you so much for sharing. You're an inspiration!

  • Investor · Brookline, MA · Member since 2013 · 7 posts · 0 votes
    12y

    Great job.  Man, costs are far lower in your neck of the woods.  In Boston, replacing all windows would just about eat up that entire budget!

  • Corpus Christi, TX · Member since 2013 · 25 posts · 5 votes
    12y

    That deal looks fantastic

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y
    Originally posted by @Matthew Candler:

    That deal looks fantastic

     Thank you!

  • Investor · Hurst, TX · Member since 2014 · 9 posts · 1 vote
    12y

    Very well done. 

  • Dawn AnastasiPro Member
    OP
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    12y
    Originally posted by @Hudson Doyle:

    Great job.  Man, costs are far lower in your neck of the woods.  In Boston, replacing all windows would just about eat up that entire budget!

     It depends on how many windows. This was not a huge house and there were only 8 windows to be replaced (plus the bathroom one which was glass block).

  • Investor · Oklahoma City, OK · Member since 2014 · 96 posts · 13 votes
    12y

    @Dawn Anastasi 

    Wow that's an awesome deal!  I enjoyed your podcast episode and its inspiring to see that you continue to have success in real estate investing.

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