2nd Buy and Hold Rehab - Kennesaw, GA

[Julie Kern]

We closed on our second buy and hold this past Monday, December 29.  Here are the vitals:

4/2 split level, single car garage, 1968 sq. ft.  

Purchase price: $87,000 (all cash)

Closing Costs: $1,000 

Estimated Rehab Cost: $18,000 (base estimate plus 20% contingency)

ARV: $125K - $130K

Estimated Rent based on Rental Comps: $1,100 - $1,150

Numbers are very similar to our first property that we purchased in November, with the purchase price $5K less but the rehab cost $5K - $7K more.

We found this property on the MLS. We made our offer the day after it came on the market. Asking price was $100K, we offered $85K with 7-day DD and quick closing. They countered at $95K and we ended up settling on $90K, but after the inspection we asked for concessions because of the needed roof replacement, so the final purchase price was $87K. There was a competing cash offer of $95K but the buyer was unable to show proof of funds immediately so they went with our offer.

Here are pics.  I'll update as we go.

Exterior: Replace roof, repair exterior siding/trim and paint, replace front stairs, replace front porch railing, repair front porch deck and replace garage door (and trim those bushes so the front porch isn't hidden).  Exterior paint color: SW Keystone Grey.  Thinking of painting the door red??

Living Room: Replace ceiling fan, remove ugly white trim above fireplace, install laminate (using laminate throughout house except for kitchen and bathrooms).  Big plus - the entire interior, including trim and doors, was just painted by previous owner so there will be minimal interior painting required.

View from LR.  Dining area on the left.  Sorry the picture is blurry.  I was holding my dog while taking pictures so quality isn't the best :)

Kitchen: Remove (decorative???) posts on left and right and cut back half wall at entrance to kitchen to open things up a little.  Paint cabinets (white?), update hardware, install vinyl tile flooring, install laminate countertops and possibly tile backsplash.  Replace light fixture.

3 upper level bedrooms.  Install laminate, replace ceiling fans.

Hall bath: Replace Vanity top, paint vanity base, frame mirror, replace toilet, update vanity hardware, faucet and light fixture and install vinyl tile flooring.

Master bath: replace vanity, replace toilet, install vinyl tile flooring, update light fixture, frame mirror.

Lower level bedroom: possibly replace ceiling fan.  No other plans for this room.

Garage: Small drywall repair, paint garage interior, install electrical outlet on ceiling for garage door opener.  One negative to this house - W/D hookup is in the garage.  Has anyone found this to be a big issue with tenants?

Deck: Paint and replace a few boards.

Estimated completion date - end of January.

[Joel Owens]

Probably want to power wash the deck first and then paint and seal.

Sometimes you can just flip the boards over and they look like new underneath and

re-install. I like deck screws versus nails. Nails grab at first but then start popping up with the heat and cold over the years. Can cause a trip hazard for tenants. Deck screws are a little more expensive but the boards tend to stay in place.

While you have carpet up in the house and vinyl floors now is a good time to check for floor squeaks which can drive some people nuts. This is from the nails becoming loose or they drove the nails in at an angle for the sub floor versus straight. You can knock them back down but they will get loose and squeak again. Putting some screw in will sink the floor back down tight to help get rid of any squeaks.

The goal is when a quality tenant walks in the place to give them no reasons to not rent the place.

If you have a popped deck, squeaky floors inside, blocked kitchen to dining room all those things start adding up for negatives and they start overlooking all the great stuff.

Congrats on your second.