First two SFRs done and leased!

[Michael Patterson]

Sorry, but this is going to be a long post. We bought our first two properties last fall and have completed both rehabs and have both properties leased as of Jan. 4th.

The first property is a 3/1/1 936 s.f. in a decent area. We bought it for $27,000 9/25/13 and put $10,800 in rehab which included stablizing the foundation with 9 beams and leveling the floors, refinishing hardwood floors, re-converting 2br to 3br., tub surround, kitchen/bath flooring, texture and paint int., new ceiling fans throughout. This one is now leased for $675. It took about a month longer than anticipated, but I did a lot of the work myself. Counting closing costs and carrying costs were in it for about $41,000. which gives us 1.65% return which is about average for our area. We have a local bank that finances investment properties for purchase price plus rehab costs up to 70% ARV, so the only money I have invested at this time are the carrying costs during rehab.

Before pics

This picture shows where they knocked out a wall between bedrooms 1 and 2 to make one big bedroom.

After pics

Bedroom #1

Bedroom #2

[Michael Patterson]

I messed up the title of the thread it was supposed to read:

First two SFRs done and leased! Can a moderator please change it?

Property #2 was 3/1/0 1048 s.f. in a lower rent neighborhood. We bought it for $23,500 on 10/31/13 and rehab came in under budget at about $8,500 which included tree removal, siding repair, Porch support post replaced, sheet rock and paint int., tile kitchen/dining, hall, laundry, new carpet living room, BRs, appliances, plumbing repairs, new ceiling fans/light fixtures throughout, insulate attic, new int.doors and front entry door (kicked in while rehabbing), blinds. The weather turned cold before the exterior could be painted, so it will get done in spring. This one is now leased for $595. This one went quicker and I did a little less of the work. I learned a lot from property #1 that I applied to this one. Counting closing and carrying costs on this one I am in to it for around $34,500 which puts me around 1.7%. This one came in under what I borrowed for rehab so I even have some reserves to start out with.

Before pics

After pics