$100,000 Profit Albany Park

[Evan Thoma]

Albany Park is the place to rehab right now. Within the area I pulled comps in (1/3 of a mile, 6 months back) the monthly supply of homes is 1.7! The average market time for rehabbed homes is 15 freaking days!!

Quick Numbers...

Asking: $170,000

Repairs: $170,000

ARV: $500,000

Taxes: $4,293.02  (2015 paid)

Okay, about the property. This is a corner lot, frame 3 bedroom 2 bath that needs a GUT rehab. If you spend $170,000 on this rehab you'll be able to get this thing to a 4 bedroom, 4 bath, roughly 3,000 sq ft beauty that is a "like new" listing. I recommend extending the home back and getting rid of the rear deck. You'll be able to fit 3 bedrooms on the second floor as well as a laundry room. I'd have 1 bedroom/office on the first floor (basically a room with a closet). Do as much with the basement as your budget will allow as it's not that deep. 

After all monthly expenses (loan payments, taxes, utilities, etc), closing costs, Realtor Fees on the end sale, appraisals and even adding in a home warranty this property should net over $100,000 profit really any way you slice it and can be done in 6-7 months just in time for the new school year.