Breakdown of a $30k Rental Purchase: Renovation [Video!]

by | BiggerPockets.com

The good news is there were no surprises during the rehab process. The renovation is almost complete, and there are only a few items that need to be finalized.

If you haven’t already seen the pre-renovation stages, that video can be viewed here. I recommend checking it out.

Breakdown of a $30k Rental Purchase: Renovation Stage

Team

Without our hard working team, this process would not have gone so smoothly. Our construction manager oversaw the rehab crews on the project to ensure everything ran according to schedule. In the event you have a solid crew, be good to them. They can be hard to come by, so when you find a good one, hold onto them tightly.

Related: Case Study: Why $30k Real Estate CAN Be Profitable [With Pictures & Numbers!]

Rehab

The scope of the work given to the contractor can be found here.

Conclusion

After the final punch out items are completed, the all-in will be under $40k. This property will be in leasing soon at $675k; however, it is also possible that it will go directly to a homeowner due to recent activity in the immediate location. The decision will be made soon.

Any questions or comments about the renovation of this deal?

Leave them below!

About Author

Sterling White

Sterling White started in the real estate industry at a early age back in 2009. The company he co-founded Holdfolio is a real estate crowdfunding platform based in the Indianapolis market. Before founding Holdfolio Sterling and partner Jacob Blackett were involved in the purchasing and selling of 100+ single family homes nationwide. In his free-time he trains for a World Record.

13 Comments

  1. Erik Whiting

    I like the before and after videos…always good to know what the starting point is. Also, thank you for including the whole scope of work spreadsheet. Much easier to track what was done and get some ideas.

    I too am curious about the roof. Initial video said it would be replaced due to several leaks, but it wasn’t on the scope of work sheet, and in the “after” video it looks like the same shingles. The last rehab I did I learned the horrors of a shake shingle roof. $7,000 for complete tear off and replace all decking, and that was with a “cheap” roofer who has done good work for me in the past, but I don’t think any of his crew speaks English… I’ve learned a roof can break a budget significantly worse than almost anything else. Maybe a crumbling foundation would be worse…or a sink hole.

    Also, both the before and after video said water heater was to be replaced, but the scope of work says “water heater is good.” Replaced or not? Not a major deal like the roof but just curious.

    Sub-$30K properties are my bread and butter. I typically find the “base” property in the $10-$15K range, and end up “all in” for around $25K-$30K. Rents range from $550 – $600. Mostly 2-bedroom, 1-bath, 800 – 1000 sq ft SFHs.

    Overall, though, I like the vids. For the future, I’d like to see even MORE nitty-gritty details. As you said, it’s the “little things”…like painting the HVAC vent covers. I’m a huge fan of 1/4 turn water shut offs on every plumbing fixture, and an easily accessible whole house shut off. My other thing is I take out dishwashers and garbage disposals. The Section 8 Bible authors have a great list of “things that tenants abuse and should be eliminated” for these houses I affectionately call my “Class C ATMs.”

  2. John S Lewis

    Sterling – great pair of pre and post renovation videos. How/where did you get your design chops? I haven’t done any rehabs yet as I’m still a newbie. So let me know how you went about getting your estimates and your design cues. Thanks.

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