Built in 1960, our semi-detached home was a 3/1.5 with 988sqft. Cap-ex was needed for:
* Original 1960s kitchen, appliances out of order
* Original 1960s Pepto Bismol colored tiles in the bathroom
* Tobacco and marijuana stains/odor in every room
* Stained carpet covering damaged hardwood
* Broken side door from forced entry by police
* Zero recessed lighting with 3 layers of blinds on every window
* Lots of trash in the basement both on the floor and mounted to the joists overhead

Check out the Zillow listing at: https://www.zillow.com/homes/119-Jasper-Pl-Alexandria,-VA-22...

What made you interested in investing in this type of deal?

The City of Alexandria is bound by the Potomac, Arlington, and Fairfax county. It has zero room to grow outward but has proximity to the Pentagon and DC. This area is ripe for gentrification.

* 1.5 miles away from the new billion dollar Inova Landmark project which will complete in 2028
* The Duke Street corridor from Landmark to the King Street Metro Station has the highest ridership in the City and will be under construction in 2026

How did you find this deal and how did you negotiate it?

Found on the MLS with zero interior pictures and listed AS-IS.

* Asking price was $525K, we lowballed at $460K.
* They dropped to $520K, we countered with $465K.
* Our agents met and we learned that the lowest they'd go was $510 because of a HELOC
* We offered $520K with $10K seller credit to be used for closing costs. Initially they balked, but eventually they relented
* We kept our inspection contingency to void (not negotiate), and included a financing contingency

How did you finance this deal?

* We purchased with conventional financing using 5% down.
* We financed all rehab using 0% credit cards.

How did you add value to the deal?

Completely renovated main level:
* Demoed and redid kitchen with new appliances
* Refinished floors and reglazed bathroom
* Replaced the roof

Complete demoed and finished the basement and landscaping
* Replaced half bath with full and added 2 bedrooms
* Replaced entire plumbing including sewer line
* Added second washer dryer
* installed stamped concrete patio and walkway plus fence
* All new landscaping

What was the outcome?

* On Airbnb as an MTR. Rents are $3K but we're aiming for $4.5K/month
* Went from a 3/1 to a gorgeous 5/2 and from 988 sqft to 1,700 sqft
* Spent $225K, with $150K on the basement and exterior, with the rest used for upstairs, furnishing and landscaping. Used 0% cards and found private money to pay most of the cards.
* Aiming to refinance with a rate-term dropping down to about $3,500/mo, so we could live for free. We wanted to do a cash-out didn't force enough appreciation.

Lessons learned? Challenges?

- Always pay for title insurance! -
On the day of closing, our agent mentioned that the sellers tried to back out. Apparently the seller's title search didn't reveal a lien (ours did) which wiped out more than 80% of their remaining equity.

- Expect rehab costs to exceed initial estimates (maybe double)! -
Initial basement costs were projected at $60K, final costs were $125K. This was due to asbestos abatement, sewer line replacement, scope creep, and poor planning.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Our GC A&M is second to none and the subs they hire are a pleasure to work with. You can really judge a person by who they surround themself with and their team were all great.