First Rehab. Cincinnati Tri-Level

[Brian Cooke]

Probably should have started this earlier. I’m a few weeks in, but I’ll split the post up so that it flows a bit better than a giant long read.

Been getting all sorts of RE education through biggerpockets and my local REIA for a couple years. Last year I spent basically the whole year trying to find a deal. Finally bought a rental at the end of the year, turnkey. Then almost immediately found a good deal for a rehab project. I figured I had enough money to finance a rehab project for a quick return. Purchased at the beginning of this month.

The deal:

3 bed 1.5 bath tri-level home. Asking price 70k. ARV: hope for 130k, expect more like 125k.

Rehab is all cosmetic, plus new HVAC and A/C.

• Redo the kitchen, leaving the floor.
• Remove dividing wall between dining room and main room.
• Remove carpet, refinish all hardwood floors.
• Expand half bath into the neighboring closet to make a full bath. (The full bath was in the master bedroom, so the two other bedroom's occupants would have to go through the master to go take a shower)
• Replace all doors, lights.
• Paint interior

Estimated cost 30k. Using MAO 70% - rehab formula. MAO is 57k, which wouldn't get accepted, based on talking to the realtor. Ended up offering 64k, which gives me a good chance of still making a decent profit for a first flip.

They accepted the offer.

Next post about the financing aspect.

Photos here Google Photos