Light Rehab (WITH PICS!) - Rental Property Purchase Story

[Dawn Brenengen]

I helped a client, @Martin Yung, buy this home in Raleigh, NC back on November 19, 2015, managed a light rehab, and got it rented.  The tenant moved in on January 1st, and I wanted to document the process for my fellow BP members. 

Martin lives in Singapore, so he wasn't able to be here for any of this process.  He closed from across the globe and just deposited funds in my account for rehab as I needed them.  The rehab took a little longer than I hoped.  Apparently, people don't work that hard over Thanksgiving, so scheduling contractors was not as fast as it normally is.  However, a benefit of rehabbing over this time period, is we got a great deal on stainless steel appliances on Black Friday.  It took about four weeks to have it rent ready, with a total holding period of six weeks from the time it closed to the time the tenant moved in.

The numbers are:

Sales price - 95,000

Closing costs - 2,000

Rehab - 9,000

Rent - 995/month

One of my favorite things about this home is that it's close to the NC State Farmer's Market.  There is a large, 306 acre, property next to that that was just sold from the state to the City of Raleigh, so the future development potential in this area looks promising.

[Martin Yung]

Originally posted by @George P.:

 the investor from Singapore scored big when he found a trustworthy person like u. this is a light rehab. 

I'd immediately change that color on the walls.  actually, what color?  looks white,  like an apartment building.  u can get higher rent when u have color on the walls. 

Thanks to biggerpockets, I know @Dawn Brenengen through BP. I actually flew to Raleigh and meet up with her and check out the city. I love the energy in the city. And of course thanks to Dawn who diligently find good deals and overseen all the rehab, renting and management of the property. She is indeed very trustworthy and the communication is timely.  

@Ayodeji Kuponiyi, As I am so far away, I prefer stability with lower return. I am budgeting 8% repair, 5% vacancy, 5% CAPEX, 8% management fees, $1,200 property tax per year, and $550 insurance per year. Since there is no mortgage, the CoC return is around 6-7%