My current BRRRR deal in progress & need contractor references

[Gorden Lopes]

Hey guys!

Had few hours of free time at my India vacation and just thought of sharing my current BRRRR deal status. If you have any rockstar contractors that you can refer then please DM me their info.

This is a 4 bed - 2.5bath 1950 sq ft property in 35816 and from the pictures it looked really messed up from inside and when I actually visited there was so much junk in the house it was really crazy! There were 2 cars in the garage and it had a registration of 2017 which kind of hinted that this house has been vacant since then.
Here are some of the before pictures/videos of the house. It looked even messy when I visited, I landed in HSV and headed straight to the house. The house was in such a mess that the inspector did not even give an official report but I spent almost 2 hours with him asking every stupid question I could ask. https://drive.google.com/open?id=1Q6hHmbisM9epttAoeFn5TzUBdtks5ehl

This came through a wholesaler who initially was asking 84K and based on my research I saw that ARV for this one is atleast 145K and worst case we estimated a rehab cost of 40-45K. And the rents around this area was 1200-1300. I started with 64K and after almost a 1.5 months of negotiation we decided on 70K. This house also has a bonus room which we can advertise as a 5 bedroom house for rent.

Rehab estimates

1. Junk removal -> 4K

2. Roof replacement -> 4k-6k

3. Hvac replacement -> 5-8K

4. Complete painting -> 3k - 5k

5. One bathroom gut rehab and other bathroom basic clean and vanity change -> 6k - 9k

7. Floor replacement/cleaninig -> 4k - 5k

8. Bathroom and door fixtures - 1-2k

8. Unknowns and margin of safety -> 5k - 8k

I just go done removing all the junk from the house for 1850, and the house looks in much better condition than we had initially anticipated. My realtor did a walk through and I think we can get this rehabbed between 23-26k
Here are some of the after pictures

https://drive.google.com/open?id=1-43UgXfPsgnc9Y3tmMJcF46eq4vDx6VE

I am currently getting quotes for the rehab from multiple contractors and will definitely share the progress with you guys. Luckily the roof ended up being in decent condition and there is a minor leak from the side of the roof which might need just some shingle replacement and also the floor looks in top shape and just needs some basic cleaning. I am hoping to get this rehabbed within 30K and then I think this will appraise for 150K based on my research and my PM said a 5bed -2.5bath goes for 1250 - 1300.

Key learning

1. I initially thought that 35816 was a Class C- area but there are certain neighborhoods in this area which are solid B. Luckily my realtor knew this street very well as he drops his son to a day care on this street and had sold a house right besides this one for 145K one year back. I walked this street early morning at 8:30 then later in the evening at 6:00 and I was really happy to see kids walking on the streets.
2. Junk removal is not a big deal. I initially had no clue how to go about junk removal but after taking multiple quotes and multiple walk through I realized that its not a big deal.

Happy to answer any questions that you might have. Also if you have any referrals for contractors please let me know.

Regards,

Gorden

[Gorden Lopes]

Hi @Scott Doyen!

Glad to hear from you! The rehab is going smooth the corona lockdown has slowed things down a little but we are on track to finish the rehab by April end. The rehab cost is hovering around 30K slightly higher than I had thought but I had put in 45K of rehab in my deal calculation so I am still good!

I will create a before and after pic folders as well. 

Luckily real estate has been deemed as essential services to Home Depot and contractors are still working! I was initially worried that this might delay my project but things look good rehab wise as of now!