Remember how rough Toto was when we got him? There was an actual shitter in the front yard and Christmas lights in August. 🚽 😂
The inside wasn’t any better..drop ceiling, wood paneling, mismatched flooring, mysterious dead something smell, and lots of stuff left behind by our inherited tenants.
We initially planned to just paint over the panels and replace the drop ceiling, paint cabinets, and replace flooring. But once we got in there, we ended up deciding to go all in and although my budget wasn’t happy with me, I am SO glad we made this choice. We found beautiful high ceilings and a new open floor plan, along with a kitchen that is completely unrecognizable! I am also grateful that I was able to leverage and strengthen my network of local women investhers and the majority of start to finish work and supplies came from all women. WOMEN CAN and ARE killing it in a male dominated space, which makes me want to keep sharing with the next generation of women. 💃🏻
Just look at this beauty we created. 👀 Improvements made include adding a laundry room, closets in all bedrooms, fresh paint in/out, all new windows, new ceiling, new kitchen cabinets/countertops and added a dishwasher, opened up the living/dining area, new bathroom vanity/mirror/accessories and new flooring throughout. We also cleaned all vents, demoed an old shed, added a new retaining wall/crawl space cover in back to protect the foundation, and repaired the roof.
Now..onto the numbers!
Purchase Price: $38,000 (negotiated down from $50,000 because I could close in 3 days)
Rehab Costs: $28,000 (only $18k over my original budget)😅
Other Misc. Holding & Closing Costs: $6,000
All in: $72,000 (we used a combo of our own savings and HELOC to fund the purchase and rehab)
We had multiple applications and Toto was rented in one day for $975 a month. When we first started, we were planning on around $800-$850 a month so we are definitely excited our property manager suggested $175 higher and we got it.
After Repair Value: TBD in late Jan when we hit our 6 month ownership mark and do a cash out refi. Based on comps, looking for something around $100,000 give or take.
While we are waiting to pull our money out and reuse for the next one, we are making some improvements to our first rental (more to come on this) and eyes peeled for that next opportunity. Let me know if you have it or if you have any questions.😉