Creatively adding value

Recently, we came across a deal that on the surface, didn't appear to be that great of a deal.  It was a 2 bed, 2 bath, 1454 sqft condo for about $52,000.

At the time, we estimated ARV at around $60,000, which leaves very little money on the table.

1454 square feet is a lot of space for a two bed condo, and we realized that we could squeeze out a bit more money if we added a extra bedroom.

In Nevada, for a room to be considered a bedroom requires a room to be enclosed with a a door, a window to the outside room, and a closet.

We decided to convert the den to a bedroom since it had already had a closet and window, and didn't need much framing to add a door.

Here is what the den looked like before:

Here's what it looked like after framing and drywall.  We framed the wall out a few feet to fit a door.

And after:

Beyond adding the bedroom, we really didn't have to do that much to the property to get it in marketable condition.  We simply painted the walls, cleaned the carpet, and installed air fresheners.

We ended up selling the property for $69,500 cash about 7 weeks after we got it.  We got roughly $10,000 extra by adding a bedroom which cost us about $600.

Key Stats

Acquisition Date: November 17, 2011

Acquisition Source: REO

Disposition Date: Jan 9, 2012

Expenses

Acquisition Price: $53,539.61

Utilities and Assessments: $100.06

Repairs: $1703.00

Rekey: $90.00

Cleaning: $120

Insurance: $140

Total: $55,835.70

Sale Price: $69,500

Closing costs and commissions : $6275.87

Net Proceeds from sale: $63,224.13