Purchase Date: 9/21
The Deal:
The seller had originally wanted $75,000 for this property, which in some ways was already rent-ready. We had recently purchased the Addison property just a couple of months ago, so we were familiar with the area. We placed the ARV at around $110-$115,000, as a 3 bedroom, 1 bath home with a basement and garage, we felt like this house was a steal. When I called to see the house I was told to come over right now and I could see it, but I had to make it within the next 15 minutes, I was already in the area so I stopped by. This was a Friday afternoon just a couple of days prior to Labor Day 2021. After walking the property I submitted an offer on the spot of $70,000, AS-IS, All Cash, Close in 2 weeks. I wasn’t 100% sure how I was going to fund the property yet, there were several options, including using a partner. The day after Labor Day I was informed that the seller would accept my offer of $70,000 if it was still available.
How Did We Find The Property?
We found this property through the Zillow App. We received a notification alert as soon as this property hit the market, based on search criteria that we had set up in the app.
How Did We Fund The Property?
The same Private Money Investor that had lent us money on the Marine St and Wells St – Blue House was wanting to lend me $100,000 to put his money to work, so he lent me the $100k against this house, which covered the purchase price, the rehab, as well as other projects – including some of the rehab for the Blue Wells St house. Our lender again wired the money directly to the title company and wrote us a check for the rest! The goal is to refinance this property into a portfolio loan with multiple other properties and pay off the investor.
How Did We Fix The Property?
For this property, the focus was inside the house. The previous owners had already replaced the windows, siding, and roof. We wanted to work on getting the inside rent-ready as soon as possible. Again, we did do some exterior landscaping and clean-up, but it was very minimal. At some point soon we will probably need to address the exteriors of some of our properties, as well as some long-term Cap X expenses like Roofs, Furnaces, and Hot Water Heaters, but so far we haven’t had too many of those issues yet.
Before Video 1 of 2
Before Video 2 of 2
Updates Done:
- We installed a brand new front door and screen door
- We installed all new lights throughout the house
- Removed all the old flooring & installed all new vinyl plank
- We replaced the shower & new hardware, installed a new toilet, fixed the mirror & light setup
- We painted the entire interior of the house
- We painted all the cabinets, installed new hardware & brand new countertops
- All new Whirlpool stainless steel appliances
- We replaced all the outlets & covers, as well as the light switches & covers
- And much, much, more!