Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
So I bought my first buy and hold for 5K. Repairs needed.. if I do it cleverly, about 10K.
the rent there is 900- 1200 per month.
But of course there is also a bad.
It is in a not-so-good area and the house needs work. But hey.... what are crazy adventures for right?
I will need help from you guru's with this one though!
So you will ask. No way the rehab is just 10K.
Well my little silly bunz, I am hoping I can expose the brick and leave electrical in metal conduit, making this the very sought after "industrial look".. much like .. so:
I just not sure if the inspector will let me get away with this. I look like a bonafide jungle creature..so maybe he will have pity on my monkey butt fayce.
How did I get this you ask?
Well you see...
many many people asked me how the heck I got this deal as everyone wanted to buy up these (town) houses as apparently they are gold mines I am now told.
Well my silly muffins... ranking one on google will get you these deals! ^_^
While everyone was busy trying to find the owner, the owner was busy finding me
Proud of you man! I know you have been hustling for a good while now and its cool to see it pay off! Im sure if you work your butt off you can make that place nice for 10k. Its gonna be great!
Sacramento, CA · Member since 2017 · 36 posts · 6 votes
8y
@Jerryll Noorden That's genuinely awesome to see! Definely agree with Paul, I admire your courage for taking that on! I also think the idea you have for the design is really clever, you would save cash while creating a unique look. Definitely post photo updates of the work it will be interesting to see the progress.
@Jerryll Noorden That's genuinely awesome to see! Definely agree with Paul, I admire your courage for taking that on! I also think the idea you have for the design is really clever, you would save cash while creating a unique look. Definitely post photo updates of the work it will be interesting to see the progress.
Man you guys are scaring me. Half of the people say "OMG are you crazy?" The other half say "OMG that is awesome you lucky monkey".
The funny thing is that everyone that tells me I am lucky owns a couple of thee (it is a row of ton houses), and are eager to find the owners of the other abandoned ones.
That is what gives me courage to be honest. Also my posts show how cray successful I am.. honestly though... I am not! I sound confident funny and carefree as if nothing has ever gone wrong. This stuff is super scary as everything already has gone wrong...
But one thing that will screw you over completely.. that one thing is , giving up...
So what choice do I have other than being a happy stinky goofball?!
Proud of you man! I know you have been hustling for a good while now and its cool to see it pay off! Im sure if you work your butt off you can make that place nice for 10k. Its gonna be great!
Proud of you man! I know you have been hustling for a good while now and its cool to see it pay off! Im sure if you work your butt off you can make that place nice for 10k. Its gonna be great!
Jerryll Noorden just curious... you said the area isn't so great?? Do you have comps for similar properties in the area?
The comps show the market value is about 45 to 52K
It is just in a bad city. But to me it does not matter. section 8!
if I put in about 10K in, within 2 years I will have gotten all my money back. If I make a mistake.. heck I lost 5 K. Not the end of the world. I just need to be very careful with the rehab. I keep wanting to go overboard. I have to keep telling myself.. NO! Bad Monkey.. NO!
New York City, NY · Member since 2016 · 33 posts · 22 votes
8y
Sounds like you can't go wrong unless you overspend on the renovation. So resist the urge and remember section 8 folks won't care about exposed brick and loft like amenities. Save that good stuff for your own living quarters! You are very brave indeed. Kudos...
Sounds like you can't go wrong unless you overspend on the renovation. So resist the urge and remember section 8 folks won't care about exposed brick and loft like amenities. Save that good stuff for your own living quarters! You are very brave indeed. Kudos...
no no.. the exposed brick makes it cheaper. Remember. with exposed brick there is no framing, no sheetrock, no nails, no taping no mudding and no painting!
Investor · Wichita, KS · Member since 2017 · 584 posts · 813 votes
8y
I love this thread. I own a Section 8 in a not great area and am having a ton of fun with it. If I bought cookie cutter homes in A and B class neighborhoods I'd have to check my pulse. I look to put my money where it is needed. I had a good size rehab too, not quite this big... At that price point you can take your time with the rehab. I would try and find a contractor that knows what they are doing and are virtually homeless and you can offer them a cheap place to stay while they do the rehab. I know you may think I am kidding, but I'm not, they are out there. Just make sure every week is a productive one and keep chipping away at it. You got this. "You've got to be bigger than your problems."-Secrets of the Millionaire Mind
Springfield Gardens, NY · Member since 2017 · 258 posts · 63 votes
8y
wow thats amazing!!! I can't believe you can even find a house for $5,000!!! ofcourse worth it to buy it and do whatever with it, from NY City area where even the biggest piece of garbage in the worst area starts at a couple hundred thousand and up, good luck with it! GREAT POST.
Bridgeport? Just a curious neighbor being nosey! Good luck, it looks like a serious project!
Very very good guess. I bet Waterbury would have been your second guess! And yes it does look like a serious project but consider this. If I remove am that plaster, the brick it's exposed. If I remove that ceiling sheet rock the brand's are exposed. I'd I then did electrical and plumbing the house it's ready for the finishes like kitchen cabinets and bathroom vanity. That would be it basically. I know I should not say that as things still bite me in my marble sculpted butt....
wow thats amazing!!! I can't believe you can even find a house for $5,000!!! ofcourse worth it to buy it and do whatever with it, from NY City area where even the biggest piece of garbage in the worst area starts at a couple hundred thousand and up, good luck with it! GREAT POST.
Well here in CT it is super hard to get a cheap house too. I was just lucky. Really lucky. Combination of ranking first on google, he needed to he being really tired of the house, and me being bluntfully honest and trustworthy.
And guess what I found under the old rotten stinky carpets...
really old OLD hardwood floors, and pretty much in great condition!!
I love this thread. I own a Section 8 in a not great area and am having a ton of fun with it. If I bought cookie cutter homes in A and B class neighborhoods I'd have to check my pulse. I look to put my money where it is needed. I had a good size rehab too, not quite this big... At that price point you can take your time with the rehab. I would try and find a contractor that knows what they are doing and are virtually homeless and you can offer them a cheap place to stay while they do the rehab. I know you may think I am kidding, but I'm not, they are out there. Just make sure every week is a productive one and keep chipping away at it. You got this. "You've got to be bigger than your problems."-Secrets of the Millionaire Mind
Yesss yes yes,
Everyone (maybe for good reason?) says stay away from the bad areas. And I never questioned it because.. well you all are gurus. BUT, if YOU are not going to live there... and you get a check guaranteed... what is the problem? Anything they destroy, just replace with the check. And I have a little theory...
if you do the house supper cheaply and ugly, WHY would they have any incentive to take care of it.
But if you do it relly nice ("nice" does not equal "expensive") and you work out a plan like every month the house is in good condition you give them back 20 dollars. The lump sum will be handed over when they move out.
Not only do they have a personal incentive to take care of the place, also they live in a nice place and not a dump. Their house looks way better inside than all the other "section 8 houses" so they will get a feeling of pride living there.
It's always great finding clean, old hardwood underneath stale and overused carpet. I had the same thing happen to me and the first thing I wanted to do was have them refinished and show them off;
Until I heard a brilliant tip from @Brandon Turner in his book on Rental Property Investing...
In most cases, especially lower income areas, the presence of hardwood would likely go unappreciated and it may make more sense to preserve that wonderful vintage material and actually cover it with another type of flooring (I've been using Trafficmaster Allure in my units, which I'm obsessed with) until it comes time you decide to sell the property and then expose the old wood, refinish, and use it as a marketing point to the next possible owner( think about how "rare" and "desirable" that same flooring might be after another 20-30 years if preserved). Hardwood can take the abuse, but it has a limit as to how many times it can be refinished.
I loved and also practice that advice, and while It's not gonna make or break your rental, I would definitely consider it moving forward with your renovation.
I've been in home construction almost my entire life and also have an appreciation/passion for up-cycling and vintage and industrial design. If you need someone to bounce some ideas off of, don't hesitate to reach out. I love talking this kind of stuff! Either way, congrats and good luck moving forward!
Real Estate Broker · Granby, CT · Member since 2015 · 695 posts · 317 votes
8y
@Jerryll Noorden. You are, indeed crazy. But awesome story you silly monkey. As long as the time/effort (along with the real $$) equals a decent ROI, then you go my man. Just remember: If you spend a ton of "time" doing activities that do not yield you the BIG returns (ie, finding more crazy awesome deals), then you could miss out on the next one. Stop slinging the hammer man :-) You are far more valuable going after deals, building relationships, and solidifying your google dominance.. MY $.02. Awesome story my friend and keep us all posted.
@Jerryll Noorden. You are, indeed crazy. But awesome story you silly monkey. As long as the time/effort (along with the real $$) equals a decent ROI, then you go my man. Just remember: If you spend a ton of "time" doing activities that do not yield you the BIG returns (ie, finding more crazy awesome deals), then you could miss out on the next one. Stop slinging the hammer man :-) You are far more valuable going after deals, building relationships, and solidifying your google dominance.. MY $.02. Awesome story my friend and keep us all posted.
Man you are right. My sites are on fire. I get about 4 to 5 optins a day. Seriously way too many to even deal with them all. I am cherry picking. I know it won't last long so I need to get a few homeruns now while my sites are hot!