Munroe Falls, Oh Single Family Rehab to Rent - under contract!

[Jen R.]

So, a little bit of background...my husband and I have owned rental properties and have completed a couple of flips in the past, but we had a big move a few years ago (and had a couple of kids), and are just now getting back into real estate investing. This is the first property we have purchased with the intention of rehabbing and renting out. We've been looking at properties and placing (rejected) offers all summer, and are finally in contract! I've enjoyed reading other investor's deal diaries, so I thought I'd document our progress on this house, and would love to get advice from more seasoned investors along the way.

Here are the details:

Location: Munroe Falls, Oh (suburb of Akron); nice neighborhood with mix of owner occupants and renters (I'm guessing it would be considered a B-class neighborhood)

Type: 1500 square foot single family home, 4 bed/2 bath, 2 car detached garage

Purchase Price: $77k; seller paying $1.5k closing costs

ARV: $140k, after approx. $25k in repairs. Plan to rent the house for between $1200-$1300/month.

Rehab Needed: The house is in fairly good condition overall (solid foundation; new high efficiency furnace; newer water heater; updated electric), but we are estimating $25k in repairs. Biggest expenses will be roof repair, flooring, exterior and interior paint, some replacement windows, and cleaning/sealing the interior due to nicotine stains/odor. We'll also be doing updates to the kitchen and baths, but are hoping to keep as much in place as possible. We will also be doing some of the work ourselves since this is our only property at the moment, and we want to keep costs down. 

We are set to close on November 9, and are excited but anxious to get going; will post pics and updates as we go!

[Jen R.]

Originally posted by @Aaron Montague:

@Jen R.

Wonderful work!  Projects like this make all of us look better :)

Where did you come up with $1248 as a rental number?

Thanks @Aaron Montague! I think one of the most rewarding things was when three of the neighbors came over and thanked us for fixing up the property - in what other industry do complete strangers thank you for making money doing something you love? 

As far as the number - we knew we wanted to price it around $1250, but one thing that I've noticed about Zillow (where most of our leads came from), is that on the map view the prices over $1k are rounded to the nearest hundred (so $1250 would be shown as $1.3k whereas $1249 would be shown as $1.2k on searches). Why $1248? Because I'm quirky and like even numbers..