Michigan St Property Closed, on to the next...

[Dave Snider]

Hello BP Colleagues,

I admit that I don't contribute nearly as much as I read so I though I'd share some before and after photos of my Michigan Street project that just closed.  I made a tidy profit but could have done better if I would have not skipped one important step - a formal inspection.   My GC talked me out of an inspection being completed by a professional inspector since "he can do the same thing."   Well, he missed two costly fixes;  broken sewer line and exposed knob and tube wiring in attic (which prohibits installation of insulation).   Knowing this, I would have requested to have these fixed or for lower purchase price.   Lesson learned (or reinforced) is to always have a THOROUGH inspection done.   

Anyway, here are the rough numbers and before/after pics:

Purchase price: $45k

Rehab, about $56k  (including sewer and electrical fixes)

Holding costs (cash deal): $2200

Closing Costs: $3500

Real Estate Commission: $9,800

Sales Price: $140,000

Profit:  Approx $23k

Before rehab photos:

https://www.flickr.com/photos/128074476@N08/sets/72157649494695016/

After Rehab photos:

https://www.redfin.com/IN/Indianapolis/5210-E-Michigan-St-46219/home/60072416

Off to my next project!

Thanks,

Dave