My first live-in, partial success.

[Jameson Sullivan]

So I said a while back I would post about my first live-in rehab but wanted to wait til my refinance closed as to not jinx it, so heres that story.

Unfortunately, due to the type of income I had I couldn't find a bank that would refinance completely for me.( I was working a job where the work was deemed too short term because it was through a temp agency, even though the team had been there 3 years) So I ended up having to settle for a HELOC, which is fine I still have access to the money but its on a floating rate some deploying the cash into a long term investment isn't something I feel comfortable with, but nonetheless I have it there for me when I need it.

It wasn't a perfect project by any means but it felt really good getting my feet wet and having the second appraisal confirm that my research and months of analyzing were worth it and correct. Heres the numbers:

Purchase: 130k

Down: 3.5 % ( about 4500)

Rehab including the closing costs and all other fees: 70k

Second appraisal for the HELOC: 245K

There's still about 5k worth of things I need done on the outside of the house including paint, a little yard work and I want to build a fence, but I believe that fencing in the back yard will add quite a bit to perceived value from a buyer.( The house is in a neighborhood with a well know public montesori school which apparently is extremely sought after by parents with elementary aged kids)

The bank originally offered me a HELOC for 60k but due to my income again, they reduced it to 37500 which was kind of a bummer, however after doing a little more work I think I could reasonably expect a 255k sales price when I get rid of it in the next year.

So not including the living for free (I rent out two rooms) and the mortgage pay down the final numbers would be:

All in Purchase ande Rehab: 205k

Sale: 255k (+/-)

10% closing: 25k

Potential Profit: 230k-205k= 25k

COC: 25k/75k= 33% over two years

Not a slam dunk but I learned SO much and it made doing it again seem much more attainable.

I would love to share pictures with anyone in the pierce county, Seattle, Tacoma, Olympia or Bremerton Areas to show you what I did, get your opinions and maybe team up on one in the future!

Best Regards,

Jameson M Sullivan