Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
After the thread by a certain member here talking about selling junk properties to owner occupants and how much of a favor he was doing them because landlords rent properties in even worse condition I thought I'd share some pictures of my latest rental purchase and rehab.
Purchase price was $30k, rehab was $17k with the following break down:
New Central A/C Cut in $2,700 Electrical $1,500 Plumbing $1,300 Bathroom $2,000 Kitchen $2,300 Appliances $950 Paint $1,600 Flooring $2,000 Misc. Caprentry $2,500 Landscaping $100
$16,950
The rehab was finished last Friday and put on the market Friday afternoon. By Monday morning I had more than 15 qualified applications at $1,100 per month for an 820 sqft 2/1. The potential tenants couldn't believe this was a rental but honestly despite the appearance most of the materials really weren't that expensive. The cabinets are from TheRTAStore.com and most of the other materials are from Home Depot (vanity and appliances are from Lowes).
Awesome! Some landlords do great! And some do not. I see them every single day in my city because we buy the run down homes and owner finance them.
I was not disparaging landlords generally. My point only was their are gangsters in all areas of REI, as well as good actors as well.
On our rehabs (we don't just owner finance), we also do high end materials. It only costs a couple grand more but it's worth it on the resale (we don't usually rent).
Nice job on the rehab and an even better job getting it rented so quick. What's on tap next?
Next up is this duplex plus 3 car garage I bought at a tax deed auction last year. 1/1 and 2/1, should rent for a total of $1,150. It won't be as fancy but will get painted, new appliances and Allure Trafficmaster vinyl plank flooring throughout. My crew just started on it this morning. It won't be as fancy but will be a quality affordable rental in a lower income part of town. I already have a waiting list for these units.
Second on the list of upcoming projects is this neglected gem which has been sitting vacant for 5 years and is currently owned by an out of country investor. I have it under contract and will be closing within the next couple weeks.
Wow! Did the Flintstones live there?? That is a crazy amount of faux stone! Nice work on the remodel.
The neighbors told me they thought the previous owners were completely insane and I believe it. Everyone was so happy to see the purple house repainted, I can't tell you how many neighbors stopped by and thanked my guys for painting the exterior (it was one the first things we did, we knew it would go over well). All of that interior "art" was hand painted with the exception of the trees in the purple bedroom, that was vinyl. I'm sure it took a lot of time to do.....I know it took a lot of primer to cover.
I think there is space in the market for nice rentals, and for owner financing properties as is or with 5-10k rehab :). Our buyers don't want to rent anymore and have no credit (cash based folks). I really like your work here sir! Hats off to you!
I think there is space in the market for nice rentals, and for owner financing properties as is or with 5-10k rehab :). Our buyers don't want to rent anymore and have no credit (cash based folks). I really like your work here sir! Hats off to you!
Thank you Joe. I know some landlords don't do things right but I always try to put out a quality product to attract quality tenants. I take a lot of pride in my rentals.
@Patrick L. - nice job! Is this in St. Pete? What type of area is it in? How did you find it? And is that a sea dragon mural on the wall??
I love the grey subway tile in the kitchen and your entire color scheme. Very nice!
It's in St Pete in a solid B neighborhood. It was actually MLS listed but there were some issues that scared off some other buyers and they were looking for someone to take it without an inspection contingency because the bank was tired of deals falling through so I got it under contract at a great price. It was under contract at least two times before I got it at much higher prices, I stayed persistent in monitoring it and got it at the price I wanted. There was definitely a big blue dragon in one of the bedrooms, I'm not sure if it was a sea dragon or if they were blue clouds.
The grey subway tile is from Home Depot, $2.63/ft. The backsplash was right around $100 in tile (40 ft) so it was only a small upgrade that really brought the kitchen together. They have a product by U.S. Ceramic called Color Collection that comes in 30 colors and 5 sizes. If you ever need orange, red, or blue subway tile that's your best bet. This is the one I used
This is an awesome rehab, great job! I would have loved to have met the previous owners. It's like living in a castle, overlooking the stone walls out to the trees. I kind of like it, but I wouldn't like painting over it! :)
The kitchen counters are actually just laminate, but yes they're from HD. The paint wasn't that bad, we used a paint sprayer and a few buckets of Kilz. There wasn't any flooring in the house so it was pretty quick to do 3 coats of Kilz on the walls and ceilings with the sprayer.
@Mary lou L. No mention of the pool in the listing, it was an added bonus. The highlights of the listing were a fenced yard and long driveway.
I'm noticing this same color scheme in a lot of rental units. The contrast with the white molding really makes it stand out. What color did you use for the walls? You did a great job and created a nice house for your tenants. I could never be a "slumlord", I try and treat others as I expect in return. Those are material and labor costs, correct?
I'm noticing this same color scheme in a lot of rental units. The contrast with the white molding really makes it stand out. What color did you use for the walls? You did a great job and created a nice house for your tenants. I could never be a "slumlord", I try and treat others as I expect in return. Those are material and labor costs, correct?
Those costs are labor and materials. The wall paint is Behr Hazelnut Cream, I've used it for about 6 years on every rental. Using the same color makes it super easy to go back and touch up paint later or repaint a dirty wall without having to cut in. I also don't have to track down the wall color for different rooms in 50 different houses. If I were flipping the house I probably would have gone with a slightly different color and probably would have done more than 1 color.
Such a "magical" home has been turned so normal, how could you lol?!?
I couldn't resist, the before pictures made me think medieval fantasy castle, something that a young kid would enjoy as their clubhouse for a few months. Seeing the after rehab pictures it doesn't look like a rehab, more like you somehow replaced some child's clubhouse with a normal home.
Great job, everything looks nice! I like the contrast in the kitchen and the exterior painted siding looks new. I also like the floor tiles, are they vinyl click lock float? I just sold a job with vinyl click lock tiles that look great. I'm use to doing porcelain or ceramic, but this is so much easier and it looks great, very hard to tell it's not real tile.