Diary of a 3/1 SFR Rent to Rehab - in Southern New Jersey

[Jon Lafferty]

I've enjoyed reading so many of these deal diaries that I wanted to add one I am working on right now. I really think there is a ton of value added to our community by sharing what the life cycle of a deal looks like at every step.

The Subject of this deal is a 3/1 rancher build in 1920. I own a home in this neighborhood and really feel like it is a sweet spot for my area due to great price to rent ratios and lower than normal NJ taxes. 

This is one of those deals that I made an offer and was rejected many times but the property had been on the MLS for months and eventually they came around. I told the agent I would be speaking with her monthly until they sell to someone else or accept my offer :)

Asking Price: 38000

Purchase Price: 20000

Rehab Estimate 18000

ARV: 70000

Taxes: 2400

Insurance: 600

Rent estimate: 1000-1100

This will be the largest rehab I have managed and will be documenting it every step of the way. I am performing the demo myself but 99% of the real work will be performed by professional trades.

So far I have had an electrician, plumber and GC in the home to bid / inspect and begin work.

Everyone loves pictures so here goes

Outside before:

Living Room before:

Bath before:

Classy bathroom ceiling:

Kitchen before:

Porch/ Sun room before: