10 minutes to read

My Investment Property, After the Rehab

My Investment Property, After the Rehab

Finally.

On April 9th, I first presented the investment property that I recently acquired.

After a few hiccups trying to get financing on my own terms so as not to disrupt the closing date of May 13th, 2014, I settled on a hybrid option of using a personal loan and cash for this property. There are plenty of advantages for going this route. I wrote about some of them here.

If I can help it, I’d never try to use a mortgage for an investment property again.

A primary residence, sure. But my experience with Wells Fargo shows that an investment property mortgage is a mortgage for a property that is move-in ready.

I learned that when you are trying to acquire an investment property, you must move fast. You won’t have much time to wait for a bank’s red tape.

After all was said and done, I closed on my investment property on schedule, May 13th, 2014, and the rehab began the next day.

It feels pretty good to hold the deed my property, especially when there is no mortgage on it.

The rehab was completed in only 10 days.

Unfortunately, now that the rehab is finished, I’m listing the property for sale, as opposed to renting it.

I could hold the property and rent it for over $1,300 monthly, but I decided that the “buy and hold” strategy is not one that I want to take right now.

I want to acquire, fix, and flip. This strategy is the quickest way to accelerate my wealth number savings. If you have no idea what I’m talking about, be sure to pick up the book.

Hopefully the days on market will be fewer than fifteen so I can move on to the next investment property that I’ll be gunning for in tomorrow’s county auction.

This wishful thinking is driven by the fact that my current home, which is in the same sub-division, was listed and put under contract in only twenty days.

I’ll write more about the details of both my personal property and the acquisition cost of this property in a later blog post, so be sure to sign-up for future posts if you don’t want to miss it.

In the meantime, here are all the things that went into the home to get it ready for a showing:

Scope of Work for this Investment Property (Finished in 10 Days)

Exterior Repair Items:

1. Mow lawn
a. Remove all weeds from flower beds
2. Add pine straw to flower bed area at front of home
3. Trim all foundation shrubs/trees located at front porch area and/or rear of home.
4. Paint all shutters (black)
5. Paint front door (black)
6. Paint trim around front door (white)
7. Remove all satellite dishes from home
8. ALL Front porch columns
a. Paint (see paint schedule and layout)
9. Add splash blocks at all downspouts
10. Clean gutters
11. Pressure wash outside of home, rear patio, sidewalk and driveway
12. Remove all screens, place in attic
13. Make sure the plumbing is clear and repair leaks, HVAC is tuned up and working, electrical is working properly
a. NOTE: HVAC tune-up/inspection is REQUIRED to be completed by a licensed, bonded and insured and certified HVAC company.
b. HVAC tune-up includes up to 2lbs of freon (per unit – if needed)
14. Make sure doorbell is functional
15. Check roof for missing shingles, flashing around plumbing boots, flashing around chimney, step flashing, etc.

Home Inspection Report Items:

II. Exterior

1. Repair inoperative doorbell
2. Seal/ caulk, paint kick plates on front and rear doors
3. Cut vegetation away from siding
4. Replace scuttle hole door
5. Repair rear door locking mechanism
6. Repair damaged siding (patch with color match as close as possible)
7. Caulk all exterior penetrations
8. Remove garage door lock/ check for proper operation

IV. Plumbing

9. Replace clean-out cap assembly
10. Repair loose toilet upstairs
11. Repair 2ea. Bath sinks
12. Start hot water heater/ verify function

V. Electrical

13. Replace electrical device covers as needed throughout

VI. HVAC

14. Repair damaged duct distribution box in attic
15. Perform system start-up

VIII. Interior

16. Repair ceiling at top of stairs
17. Replace missing doors/ reinstall existing loose doors
18. Replace handrail
19. Replace flooring
20. Adjust/ rig bedroom door
21. Replace bedroom window
22. Replace smoke alarm batteries/ ops check system

IX. Appliances

23. Replace inoperative disposal

Interior Repair Items:

1. Paint interior of home
2. Remove and install new carpet in entire home
b. Laminate hardwood flooring downstairs
3. Replace all filters
4. Change all inoperable light bulbs
5. Install carbon monoxide detectors on 1st floor
6. Replace all damaged and/or missing outlet covers with white outlet covers
7. Replace all damaged and/or missing switch covers with white switch covers
8. Replace all damaged and/or missing door stops
9. Clean interior of home+ windows

Living Room+Foyer (front room)

1. Replace fireplace batteries/ start-up logs
2. Install laminate hardwood flooring
3. Paint walls/ trim
4. Install CO2 detector

Kitchen/Breakfast Room

1. Paint Walls, Trim, touch-up ceiling
2. Install microwave
3. Replace garbage disposal
4. Caulk sink area

Dining Room

1. Install laminate hardwood flooring
2. Paint Walls, Trim, touch-up ceiling

Stairs/2nd Floor Hallway

1. Replace carpet
2. Paint Walls, Trim, touch-up ceiling
3. Clean HVAC return
4. Replace handrail
5. Replace missing closet door

Second Floor Hallway Bathroom

1. Caulk sink and shower/tub combo
2. Paint Walls, Trim, touch-up ceiling

Downstairs Bath

1. Paint Walls, Trim, touch-up ceiling
2. Caulk plumbing fixtures
3. Install laminate hardwood flooring

Pantry / Laundry

1. Paint Walls, Trim, touch-up ceiling
2. Remove/ reinstall wire shelving for cleaning/ painting

Master Bedroom/ Closet

1. Paint Walls, Trim, touch-up ceiling
2. Replace carpet

Master Bathroom

1. Caulk sink and shower/tub combo
2. Paint Walls, Trim, touch-up ceiling

Bedroom #2

3. Paint Walls, Trim, touch-up ceiling
4. Replace carpet
5. Repair 2ea. closet doors

Bedroom #3

1. Paint Walls, Trim, touch-up ceiling
2. Replace carpet
3. Repair 2ea. closet doors

Bedroom #4

1. Paint Walls, Trim, touch-up ceiling
2. Replace Carpet

Downstairs Bedroom

1. Paint Walls, Trim, touch-up ceiling
2. Replace Carpet
3. Replace broken window

Total Cost and Pictures

Before the Rehab Pictures

After the Rehab Pictures

The total cost for the renovation, including coordination fees, appliances, and wastes of money that I will soon write about: $15,000.

Still not bad.

I paid only $86,050 for the home and will list is for $152,000.

Time to flip this home and do it again…

Again, be sure to compare these pictures with the earlier ones from when I first acquired the property.

Andy, the contractor, and his team of two people did an awesome job.

And I have to thank KNB Enterprises for coordinating the entire process while I did pretty much…nothing more than said, “make it happen.”

Comments

  1. The place looks great Romeo! What city/state is it in? Heck, I’d buy it haha. Good idea to flip it and continue. You’ll still make a good profit, even with the extra expenses to rehab it.

  2. Congrats, Romeo! I’m excited for you and hope to hear about more real estate successes going forward.

  3. It looks great! Looks like the first flip is a good one!

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Leave a Reply

%d bloggers like this: