Rehab to Buy and Hold

[Kyle M.]

Hey guys, I am still looking for my first deal and back on the hunt! Buy & holding "average plus" properties in my area doing yield a positive cash flow in my area. My new strategy is to rehab a "fixer upper" and turn it into an asset that produces positive cash flow.

Below are some pictures of a 3b/1ba 1300 sq foot house. What do you think an estimate would be to do a full rehab to this property? The end goal is to rent it out so basically going low-end on a lot of things.

Quick Financials:

50K listing price *bank owned*

~$350 taxes per month ($4200 per year)

Median Rents - $1450 for 3br (rentometer.com)

Any advice would be appreciated, thanks!

[Mike M.]

50-60 in renovation costs. And that's just the stuff we can see. I have no idea of ARV but if you play it safe at 1200/mo rent you'll be in 1% rent-to-purchase price. It's not the worst spot to be in but the 3/1 setup wouldn't be near as desirable as a 3/2.

I don't mean to sound flippant but if your guesses are from 10-30K definitely walk it with a GC. I'm no construction cost god but everything costs twice as much as you and I think. Like Walt said, a lot of work in that one.