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Obstacles, Results & Lessons Learned

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My recent rehab was very stressful, but it finally hit the market. We got this lead from a fellow investor who couldn’t start rehab due to an unplanned tragic event. He took the opportunity to call me and advise me to sell for $ 127,000. I advised him to pay for the property. It closed in August 2014.

When we first bought the house, it was 3/1 at 1,000 square feet. I knew I needed to add 700 square feet to my existing structure. We were looking for a $ 325k ARV. The project started in October due to personal issues, plans, permits and obstacles to life. We have built a deal with a hard money lender that allows us to defer payments until December due to the fact that we have reduced it by 10%. Remember: Always be creative, even when working with lenders.

The contractor is very good at his job, but must be slower than an obese man in a marathon. As you know (or you should know), time is money when you are rehabilitating. Every day you hold property, you pay interest. A contractor is more like a business partner than a contractor. He funds a lot of things and sometimes rehab. So, in this situation, we have to do good and evil together.

Related: 9 steps to follow when working on a large rehab project

Of course, we exceeded our budget and ran into some problems. For example, a neighbor said it was our fault that someone invaded the house because a thief used bricks from our front yard. In a nutshell, it’s always the case.You can read more about the whole process On the article..

Transformation

Go back to change. As you can see, this house had no driveway. This is a big problem for homes that demand more than $ 300,000. We had to get rid of a huge big tree to get a half-moon driveway for the house. It came out very beautifully. Also, since the front of the house has no personality, we added a gable to the front to make the house look attractive and attractive. In addition to extensions, we have created an open kitchen where you can interact with guests and family in the living room.

For existing homes, we used the original hardwood floors. And as an extension of the house, we put in a new hardwood. The dirt on the floor has come out cleanly. In the kitchen, I used a grayish cabinet with a nice granite countertop to match the gray theme throughout the house. The two existing bedrooms are a bit small, so realtors have suggested staging so that people can imagine how they can fit their stuff in their bedroom. The master bedroom is a masterpiece to say the least. You have an exit to the back deck, and the bathroom is to die. Bathrooms are one of the things you’ll see on HGTV, which means you won’t brag. If you can afford to live in a rehab house. Maybe someday I’ll be lucky enough to do so.

mcalway foyer mcalway front mcalway hall.jpg mcalwayback.jpg

Related: Rehab Confession: Expert Tips for Profitable, Rentable Properties

In the backyard, the bamboo had to be removed. In doing so, it had to be removed from the roots to prevent it from undoing. There was also an ugly hut we took out. After making some changes, the backyard is now a place of peace.

Conclusion

In conclusion, we listed our home yesterday at a price of $ 370,000. In summary, we considered buying for $ 127k, investing $ 125k, and selling for $ 370,000. It was definitely a learning experience for me. For example, do not mentally monetize a check until you close the transaction. I may have vowed that I would have checked in May for this deal. But things happen and usually don’t go as planned, so you have to keep rolling with a punch. One of the things real estate and entrepreneurial ventures do is to bring patience. It’s also nice to be able to transform to beautify your neighborhood. Neighbors literally came out to thank us for our work. I felt like I did something completely rewarding.

Investor: What kind of projects are you working on lately? Did you have a problem?

Let us know in the comments!

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