BRRRR Purchase and Remodel in Farmville, Virginia

[Ben Sears]

We're currently in closing on this property outside of Farmville, Virginia. We purchased this property from a friend that we have purchased from before. She has a HUGE portfolio (30+) of houses that are in significant disrepair. 

Single family residence on well and septic

Vacant for four years

884 square feet

The house is in need of some structural repairs to the floor joists and main beam from a leaking water heater. We will upgrade the electrical service to 200A and review all of the plumbing and electrical work. We'll gut and remodel the kitchen, bathroom, and utility room. The rest of the house will receive cosmetic updates such as paint, drywall repair, new interior/exterior doors. We plan on replacing all of the windows for energy efficiency. The house has and oil furnace with no air conditioning so we'll be installing a new heat pump in addition to new insulation to keep the things comfortable inside. The roof will be evaluated for repair or replacement. Finally, we'll try and tame the yard by having a contractor bush hog and clean up the trash in the yard.

Property Purchase $20,000

Estimated Repair Costs $40,000

ARV $75-$80,000

Monthly Rent $925

[Ben Sears]

Well we made it through closing (the quickest I've ever been through in under 10 minutes!) and the house is officially ours! We immediately got our landscape contractor to work clearing this jungle of trees and vegetation. The guys did an amazing job and even cleared an old shed and hauled trash for $700.

Here's what's on tap for this week:

-Exterior door installation and secure the property

-Roof bid (complete $3k)

-Window bid (complete $2200 installed)

-Meet engineer from the power company to have service upgraded from 100A to 200A

-Power wash the exterior to prep for paint

-Partial interior demo on Friday to repair structural and water damage

I hired a good friend as a project manager. He has some limited construction experience but is a self starter and doesn't take a lot of crap from people. He's jumped on getting most of the bids and started working on a schedule. He's extremely part time so our deal is that he'll be compensated 1% of the total project when we refinance (~$600). He's in this for the long haul with me and we'll continue to adjust his compensation based on project size and performance. So far this hasn't saved me a tremendous amount of time. For anyone contemplating hiring a PM, you should bite that bullet!

I get more and more excited about this property every time I visit. We're under budget and on schedule so far and I hope it stays that way!