All Forum Posts by: Christopher Boggs

So I am about to put an offer in on a great REO Triplex priced well below market. It must of been renovated by the previous owner before they defaulted. It is ready to rent other than a few minor repairs and maybe some paint. But there is obviously a problem or why would I be making a post....

The property is located in a neighborhood that is probably one of the best rental markets on the east side of cleveland. It has a pretty decent school system, colleges near by, and a couple of popular bar districts.

BUT this property is located on a terrible street, and I don't mean its located on the wrong side of the tracks, and the whole section of the neighborhood is bad. Its literally just this street is bad. It is the only street in the neighborhood that is all duplexes/triplexes. I think the fact that the street has been all rentals for many years is the cause. The other properties are not in the best shape cosmetically since they are all rentals.

The numbers on the deal are great and the ROI is good. What do you guys think about investing in a property on a street that you know can't get any worse, but will probably never turn around?

I have used the Rustoleum Countertop Transformations a couple times and had great results. Also I used their Appliance Epoxy paint to refinish a dishwasher and the results were also great. So I am starting to have some faith in their products

Has anyone used their new product Rustoleum Tile Transformations?

I have a couple units coming up that have hideous looking tile (green, pink, etc), but the tile is in great shape physically. This might be the perfect solution, but I am still skeptical about refinishing/painting tile.

I got some numbers. I don't have a full breakdown, but here is what I have.

Purchase Price - $13,500
Closing Costs - $819
Holding Costs - $1200
Rehab Costs - $20,880

Total Invested - $36,399

We are happy with the financials overall, but we definitely over-improved in a few areas, but it was our first property so definitely a learning experience.

Thoughts?

I have continued to use these Kwikset keypad deadbolt locks on rentals and flips under renovations. The results have been great. I change the code after I give it out a few times (takes 10 seconds), and I never have to be present to let in contractors. One suggestion though. Spend the extra $30 and get the higher end deadbolt they offer. The $70 model requires mounting screws into the door. Which you will have to fill and paint over when you rent or sell the house. The $100 model does not require mounting screws. Links below

$70 Model - http://www.homedepot.com/p/Kwikset-907-Powerbolt-Polished-Brass-Electronic-Deadbolt-Featuring-SmartKey-907-L03-SMT-CP/202290200#.UU-4YhzvuSo

$100 Model - http://www.homedepot.com/p/Kwikset-909-SmartCode-Polished-Brass-Electronic-Deadbolt-Featuring-SmartKey-909-L03-SMT-CP/100669001#.UU-4XxzvuSo

Update! - We ended up using Drylock. Originally we had a very minor moisture problem, and even though we had a very wet winter and spring. The drylock seems to be holding well, and there isn't any moisture in the basement anymore. I will update again if anything changes.

I ended up not having them paint the floor and we agreed on $1400 for the walls. They did a great job, but I noticed that its a rough job and doesn't require a lot of precision.

Having learned that on the next property I just bought the materials, and had my laborers do it. Total cost $700. Though the first company did a good job. I will be doing it in house from now on.

Well its been 3 months since I said I was going to post pics, but you guys know how it is. I do real estate "Part Time" while having a full time job. I was so naive when I thought his was going to be part time. Anyways I got the pictures together and here they are.

Here is a list of what we did in the kitchen

- Remove 3 layers of flooring
- Laid down underlayment to cover up imperfections in the floor
- Refinished white formica countertops with Rustoleum Countertop Transformations - http://countertops.rustoleumtransformations.com/
- Used Deglossing solution to prep cabinets, and then painted cabinets
- Sanded cabinets because deglossing solution didn't work and the new paint was peeling.
- Painted the cabinets a second time
- Installed Trafficmaster Allure Resilient Vinyl Plank Flooring in Sedona
- Installed new trim
- Bought a great sink at auction for $85 (retail $500+)
- New Faucet
- Installed Bar Pulls in Satin Nickle and matching hinges
- Painted kitchen and new trim
- New Frigidaire Range
- Refinished front of Dishwasher with Rustoleum Epoxy Appliance Paint. [/img]
- New outlets, switches, and covers
- Painted some light fixtures, and replaced the main one with the token $9.99 Homedepot satin nickle fixture

Lots of Pictures, but unfortunately I only have one before photo

Before

During

AFTER!

Thanks for the input guys. After getting the exact measurements, changing the two bathroom windows to frosted glass, and adding muttens (dividers) to the windows facing the street. The grand total was $2,420 with tax. So about $150 a window. I will post some pics when the windows are in.

Thanks everyone for the kind words

David G - We used Glidden Duo, Its a Paint and Primer combo my painter suggested. Looks great, pretty inexpensive, and only too one coat. For the trim we just used a glidden trim paint.

We took possession in early December. The bulk of the renovations were done by the middle of January. So the renovation time was about 5 weeks. Completion was delayed till the beginning of march though due to a few of the outdoor renovations that couldn't be completed because of our amazing weather in Cleveland, OH. Also due to city codes we couldn't tenant the property till these outdoor weather delayed renovations were fixed.

I have been doing the acquisitions and rehabbing. My business partner has been handling the finances. He is getting me the numbers and I will post them later tonight

Well......to be honest it is our first property. It started as a rental and we over did it on the renovations for our market. We considered just selling it after recognizing that's what we had done, but then we ran the numbers and figured 18% return was good for a buy-n-hold (before cash out refi). We are in the process of tenanting the property and cashing it out.