All Forum Posts by: Cory Iannacone

@Victor Steffen It truly depends on what area of Harrisburg you are looking at.  There are a number of areas that have been revitalized over the last 10 years.  Others remain very depressed.  The revitalized areas are more expensive to purchase, but also draw good tenants--young professionals.  The depressed areas draw the opposite.  They may have much better cash flow, but they also have higher turnover, more issues with property damage/repairs, etc.  

Here's a duplex I just purchased in Old Uptown Historic District last month and just finished rehabbing.  A lot of money was spent revitalizing this area over the past decade. 

https://www.biggerpockets.com/forums/223-biggerpoc...

Thanks @LaShelle Stewart Here are my rough numbers:

Interior ($6,000.00), includes:

- paint

- electrical (replace all outlets/switches, fixtures, etc)

- backsplash

- plumbing (replace toilet, faucets, etc)

- repair damaged doors and carpentry

Exterior Paint ($4,000.00)

13 Windows Replaced ($4,000)

Carpentry (wood repair)  - $2,000.00

Install additional bath $4,000 labor

Install vinyl plank flooring ($1,000.00)

Repointing $2,800

Re-pour concrete pathway - $2,600

Keep in mind, this is the amount I am out of pocket. I financed materials through no interest deals, which I will pay off within 2 years.  This includes:

Appliances - $1,700.00

Granite Counter - $1,300

Materials - $5,000 

@Brenton Way self managing for now.  The whole property has been updated (so hopefully no true maintenance issues and there’s not much to do assuming I get a good tenant). But I budgeted for PM when running numbers.

@Cliff F. and @Chris Jensen - I used a conventional loan.  However, I did end up going with a 10/1 Arm (through portfolio lending) which allowed me to put down only 20% instead of the 25% required by Fannie Mae and Freddie Mac standards.  

@Chris Jensen - I hired a contractor for all the work.  Local guy with a handful of workers.  Gave me a great price and was one hell of a worker.  As far as my experience goes, this is only my second rehab.  My first one took me about 7 months.  This one I was able to knock out in a month because I learned a lot from my last one. I would say no major problems with this one.  Largest challenge was the amount of time spent going to Home Depot to exchange materials and pick up new ones. Trying to become more efficient.  

@Brenton Way So do I.  It's nicer than my kitchen.

@Brenton Way I should be in the right range, just on the high side (But, I consider mine to be on the nicer end).  First property is in Catonsville, Maryland (suburbs of Baltimore).  I rehabbed that one too and got top dollar for rent and awesome tenants.  Here's the kitchen from that one.

@Brenton Way Old Uptown Historic District.  It's the area that has seen a revitalization over the past 10 years.  There is a ton of space--the tenant is basically getting a whole house.

@Jody Schnurrenberger that was my thought process in adding a second bathroom. Now each floor has a very large bedroom and it's own bathroom. I thought it would help increase the rent and getting roommates to split the cost. Cost of adding a second bath was about $5,000. Assuming that helps me get an additIonal $100 / month in rent, that would be a 24% ROI.

@Jody Schnurrenbergerthanks!