Clarksville, TN Class A Cosmetic Flip or Rental

[Rylan Kean]

Attached are my buyer notes. I Overall this area is appreciating very quickly, and is one of the best areas to be in Clarksville.

Pictures, https://drive.google.com/drive/folders/1VIFL68nuVo....

Option 1: Rental

$135,000 : Purchase Price

$5000 : Closing Costs: (Conservative estimate, will be much less if you are a cash buyer)

$5000 :Rehab (conservative)

$657: Note (assuming 20% on 30 yr at 5%)

$200 : Taxes and Insurance

$0 : trash and utilities

$1400 : rent

= $543 a month (also include your rates for vac/cap ex/ main.) 

Asking Price: $135,000 (Buyer will pay closing costs of seller)

Rehab Costs:

• Rent ready
  • $3000-$5000 for rental unit (includes new carpet, deep clean, paint touch up, new toilets, and shower grout refinish or replace with kit)
• Flip
  • $8-10,000 material depending on the finish level.
  • $3600 Sewer Tap (I have a quote from Reynolds plumbing for this work). For a rental there is no reason to do this, septic to my knowledge works fine.
  • $5,000-8,000 labor

Expected Rent: $1350-1400 - this also has high potential for rent-to-own.

ARV: $195,000 -$205,000

Total Taxes: $1548

Built: 1991

Bed/Bath: 3 bed 2 bath with potential 4th bedroom downstairs (it is already finished).

Lot size: .45 acres

Neighborhood notes: 1 mile from I-24 and 1 mile from Rossview school system, which is rated one of the best in Clarksville. Safe and established neighborhood. 1.5 to the new Hankook Tire manufacturing facility. Clarksville City Council just voted this week to purchase the land for a high end sport facility, including TSSAA ran soccer fields. This is also an attractive area for military families, as Ft. Campbell is 15 minutes away and many people move in all the time.

House Notes: All brick house with approx. 1,200 sq ft upstairs living area and another 650 sq ft of finished basement. Also includes two storage closets downstairs and a 2 car garage.

Overall Rehab Notes: For a rental; new carpet, new paint, cleaned, minor cosmetic touch ups ($3000-5000). For a flip: very quick rehab and flip, all cosmetic. Would also be a perfect live in flip for someone who wanted to build equity in a great neighborhood that is appreciating. Was walked with a qualified GC and was told no major issues, and would be a very quick and cheap turnaround.

Expected Rehab:

• Heating/Cooling: outside unit is from 2014 and all pieces are in known working condition. Just serviced.
• Roof: Newer roof, no issues
• Water Heater: 2 years old and is known working.
• Plumbing: all is in known working condition
  • Is currently on septic, but city sewer is present just needs connected. If a rental, no need to connect to sewer, for a flip I have a quote from Reyonlds Plumbing for approx. $3600 ($632 tap fee by the city additional). Again, as a flip no need to do that at all.
• Electric: all is in known working condition.
• Windows: windows appear in good, working condition with no broken glass, but are wood. There are 8 total. I would paint these, and not replace.
• Flooring: Carpet currently in the bedrooms needs replaced, tile in the kitchen and bathrooms can be saved just needs cleaned, and wood laminate in the living room/hallway can pass for a rental. For a flip I would consider replacing all upstairs with luxury vinyl or laminate. Downstairs flooring is in great condition just needs cleaned.
• Paint: no damage to walls, ceiling or trim. Just needs touched up and a fresh coat of paint.
• Inside:
  • Kitchen: Cabinets in working condition but need repainted. Everything else needs updating; countertops, lights. Sink and faucet are in good condition.
    • Laundry is off the kitchen, as well a nice sized pantry.
  • Bedroom 1-2: just need new carpet, lights, and paint. No issues.
  • Guest Bath: just needs updating with cabinet paint and new lights. Shower/tub and vanity are all in good condition.
  • Master Bedroom: Needs new carpet, paint, and a new fan.
  • Master Bath: Needs cabinet repainted, as well toilet replaced and stand in shower updated for a flip, or regrout for a rental.
  • Garage: Newer garage doors, just need automatic openers. Great tall ceilings an open area in between.
• Outside:
  • Gutters: great condition and I cleaned out the gutters.
  • Brick: is in great condition.
  • Entry stairs need minor mortar work.
  • Landscaping:basic trimming of bushes and mulch.
  • Deck: needs a few rails replaced and painted, but in good condition overall.
  • Fence: is in working order with a gate.