Thibodaux, La. SFR - First Deal, Second Rental Property

[Clint Galliano]

We ran across this deal on MLS. It originally listed for $120,000. I didn't think much of it at first because we weren't sure we were ready to purchase our first deal. A couple of months later, the price was dropped to $80,000. That really caught our attention and made me wonder what was going on.

I looked at the listing on Zillow and saw that it was a 4 BR/1 Ba in need of some TLC. One of the pictures had the listing agent's sign in it and I recognized the name as a former property manager who actually lived in the neighborhood.

I contacted her and set up a showing. The structure is in good shape, with upgraded double-paned windows and an 8 year old roof. Floors, ceiling tiles, and HVAC ductwork need replacing, some electrical upgrades, painting throughout, and a gut & refinish on one bedroom.

Comps for recently sold houses in the  neighborhood ranged from $125k - $155k, so we offered $72,581. It was accepted and inspections were ordered. 

The electrical came back with the need to replace the outlets near water sources with GFCIs plus the breaker panel and feed wire at a cost of around $1500. The seller agreed to drop the price to $71k to accommodate this.

We closed on 18-Apr-2017 and have started the  rehab. 

I plan to update this as we go until we get it  rented.

Wish us luck!

[Clint Galliano]

Definitely will be posting updates. So far, the electrician has added a couple of new grounded circuits and replaced the electrical panel and the HVAC guy should have a new inside unit and ductwork in today. 

I will post before pictures later today or tomorrow.

We will start painting this Saturday, plus I need to line up a contractor to replace the doors and do some carpentry & drywall.

Plumber will be in later to replace kitchen sink, toilet, faucets all around, and change a gas valve out.