Investor · Mechanicsburg, PA · Member since 2017 · 110 posts · 50 votes
Hello BP'ers! Wanted to share this success story with all of you who have guided and inspired me each step of the way as I was dwindling in this uncharted territory. So here is the short of it as it stands around 6 months after I purchased this property -
SFR; 3Bed; 3Bath; 1080Sq. ft.; Ranch home with walk out lower level; 8400 Sq Ft. lot
Acquisition price + Closing costs - $82000 (Bank owned reverse mortgage property so bought it at listed price in April)
Rehab cost - $4300 (Yes, I went overboard with it as initial estimate was only 25k, talk about estimation :))
Total in : $125000
Rented in August 2017 for $1400 (I believe I am getting rent on the higher side for the area, because of the improvements)
Appraisal came in today for refinance at $168000, so essentially I'll be able to clear all the money poured into this! Not considering closing costs for refinance, this amounts to infinite returns!
Needless to say that I am super excited after this roller coaster of a journey....
Hopefully I can duplicate this success story! I just closed on a duplex that needed some rehab in the kitchen and bathroom, but then my PM noticed the roof was entirely rotted due to the tree branches laying on the roof directly for probably years.
Purchase price - $45k
Rehab - $18k
Rents currently - $1,400 once at market rate, $1,600
The only thing I'm nervous about is, the comps in he area only go for between $45k - $65k.
Investor · West Babylon, NY · Member since 2017 · 7 posts · 2 votes
9y
Great Success Amit. I recently joined BP and absorbing the vast knowledge shared here by everyone. But when I read stories like yours, it gives me, even more, confidence to take up a new project for our next investment. Thank you for sharing your story
Investor · Mechanicsburg, PA · Member since 2017 · 110 posts · 50 votes
9y
@Matt Welch It was a trashed property that had to be completely redone. We are talking about 100% new wiring, 90% plumbing, roof, 70% new drywall, huge Deck at the back, gut and redo the entire kitchen, and gut and redo entire basement area, gut and redo all bathrooms, new carpet, landscaping etc etc. This being the first project, I wasn't sure what it should have taken, but based on the comments from a few people I spoke with, they were impressed with the amount of work that was done in those 4 months.
Investor · Mechanicsburg, PA · Member since 2017 · 110 posts · 50 votes
9y
Thanks @Dipti A.! Welcome to BP. I joined in February, identified this property in March and closed in April. So the support from BP and the inspiration and motivation it provides has been a key factor; to say the least!
Investor · Mechanicsburg, PA · Member since 2017 · 110 posts · 50 votes
9y
Thanks @Anjali A. Thank you! Well this 5 unit had been on the market for quite some time and the reason probably was that it needed a lot of work. I have plans to keep this property for a longer term so do not mind doing extensive rehab on it.