My first rehab, with pics

[ElephantNest]

Here's the house I bought down the street from us, Katrina damaged. The owners just let it sit and get worse for 16 months.
 
Bought it right before Christmas, and got it for a great price, but the rehabbing costs are a little over budget. Still should have about $44K in instant equity when it is completed. Going to make a great rental property.....I can see it from my window.
 
 




 

 
 Still needs the brick painted, landscaping, kitchen cabinets, and a few other things, should be done in one to two weeks.
 

 

 

[jsstinson]

Nice!

[AmandafromIndiana]

Looks like fun!

[johnnyg]

Best of luck to ya. Hope u have insurance.

[John_NM]

Great job        Better get good insurance or you'll have one big 

[ElephantNest]

Thanks!


I had a builders risk policy that expired on the 21st, then my tenant/dwelling insurance kicked in. Fully covered with 300K liability, flood, etc. ( the 300K GL was in place during the builders risk policy also, just a separate policy.)

[DannyTheGreat]

You must of done this yourself. The seasons have changed in the pictures. How long did it take you to get to this point and how much will you make per hour of your time?

[Rich_in_CT]

What are the numbers on this deal?

[ElephantNest]

Actually, I bought it right before Christmas. The first picture was taken during the summer, before I even considered buying it. It is right down the street, and is just one of the many damaged houses I have pictures of. The 2nd picture is one I took right around the purchase time.

Time so far, a little over 1.5 months. Total rebuild of roof, 100% new decking, shingles, etc. Only the rafters (some, not all ) were still good.

Contracted most of it out, I will be doing the landscaping, lawn, got the stumps grinded, took care of some drainage issues, etc.

The numbers are:

23K purchase.....26K with closing costs...

45K to contractors for 90% of the work

20K for taxes, insurance, electrical, kitchen cabinets, countertops, and a few other things that are on me.

So... 88K, house is appraised at $132 as it was....but I plan on doing some decent landscaping ( I own a landscape company ), got a monitored alarm system installed, knocked out some walls to really open the place up....and a few other things that I think will/may bring the value up to somewhere closer to 135-140K.

Thoughts.....?

[Rich_in_CT]

The numbers look great, that's all that matters!

[rlack72]

Thanks for sharing. Looks like a lot of work with big rewards! Good Job!

[ElephantNest]

The numbers look great, that's all that matters!

Should I consider selling? What about capital gains? I really wanted to keep it for cash flow and long time wealth, but the allure of fast money is looming, honestly. I hate to lose almost half to taxes.

[Rich_in_CT]

Keep it for a few years, wait for the market to really bounce back then sell it high.

[ElephantNest]

My new tenants signed the lease two days ago. My first project, so it is a very pleasing experience to have it rented. I will have to get a more recent picture for the forums, it looks great. Thanks for all the help so far from everyone.

Steve

[LoriK]

Great job!  Grab another one just like it LOL!