This is the house I closed on last week. The seller moved out over the weekend and I was able to go in with my contractor on Tuesday to go over the scope of work. We agreed on a price today and my contractor is starting work tomorrow.
My guy is doing the repairs in the scope of work below for $3,400. I have a carpet cleaner going by to give me an estimate and to let me know whether he thinks he can make the carpet look like new. If we can clean them, instead of replace them, we will save a lot of money. I’m sure there will be other miscellaneous items that pop up and I will let you know when they do.
[Source: Bandit Signs]
This is a 4 bedroom, 3.5 bathroom, 2500sf house that was built in 2006.
| Purchase Price: | $100,000 |
| Settlement Fees: | $2,159 (title policy, closing fee, insurance, loan fee) |
| Estimated Repairs: | $4,000 (estimated 6,500, that will be if we have to replace carpet) |
| Resale Price: | $170,000 (might have to go down to $160k quickly) |
| Estimated Profit: | $63,841 minus holding costs and selling costs and likely reduction in sales price |
Exterior.
• Power wash the exterior where necessary.
• Paint back wall of house where stained.
• Paint front door.
• Install new brushed nickle door hardware and kickplate.
• Install new full-lite back door with silver doorknob and deadbolt.
• Clean windows inside and out.
• Clean columns at front of house.
• Replace the outlet cover on the front porch with matching.
• Install new doorbell.
• Add dirt around slab where needed and red mulch in the front.
• Water grass and plants when possible.
• Haul off construction debris and trash.
Interior
• Remove damaged blinds from the breakfast room.
• Patch all cracks and imperfections in walls and ceilings. Match texture.
• Install correct light bulbs in bathroom and where needed throughout (including kitchen fluorescents).
• Make sure all switch and plug plates match throughout the house. Replace broken/painted ones.
• Check attic for debris and any open wire junction boxes or just anything that would not pass inspection.
• Install new ceiling fans (matching oil rubbed-bronze) in living room (w/ downrod) and upstairs den.
• Replace light fixture at top of stairs with a flushmount oil-rubbed bronze fixture.
• Re-caulk around toilets and where necessary.
• Spray garage to remove pet odor.
• Prep interior for professional painting (remove all nails and things attached to walls and neatly caulk and sand) Paint interior – All Walls and All Trim and Ceilings only where necessary.
• Install vent cover where missing for downstairs half bath.
• Clean return air vent and opening and install new air filter.
• Install door stops, smoke detectors where necessary.
Paint Colors
Front Door: Red Bay SW 6321 SEMIGLOSS
Interior Walls: Realist Beige SW 6078 FLAT
Interior Trim: Extra White SW 7006 SEMIGLOSS
Please excuse the pictures. I’m not the best photographer and I had to mix and match with pictures before they moved out and after they moved out because my battery died while taking the pictures after they moved out.
Comments (24)
Looks great. Does the $3,400 include the cost of the materials (paint, fixtures, etc.) If so, what does the contractor charge you just for painting the place (all walls, all trim, and ceiling where needed) for a 2,500 square foot house?
Scott,
Yes, the cost includes materials. The light fixtures might go over a little and I told him I would pay extra for anything over $100 per ceiling fan and anything over $40 per flushmount light.
Typically a 2,500 sf house for the interior painting will be about $2,500 with everything. This one doesn’t need the ceilings to be painted so I am paying about $1,500.
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Danny, how was this lead generated? I went back through looking for a 4 bed, 3.5 bath in the deals you analyze every week and couldn’t find it.
Thanks!
Chris,
That is a secret. Just kidding. I think I mentioned getting it under contract in the Twelfth week post (not the lead section, but the “what I did this week section”). It came from a bandit sign.
Danny, you are going to leave the pink bedroom? Hope you make a good whack on the house. Hope you post the final numbers, good luck, Mark.
PS, If you can stand the question—what are using for funds?
Mark,
The pink bedroom must go. One of my daughters thinks otherwise.
I use private lenders.
Even if you make half that profit……most rehabbers would take that all day long!
Hope you get it sold quick!
John
John,
Yeah, you can’t beat those super light rehab rehabs! I also hope we sell it quick. We don’t usually stage the houses, but we are going to stage this one with furniture. With this one, we are competing with new construction houses.
Hey are you going to at least keep the Def Leppard poster? 🙂
Mark,
Of course. That is one of the “sizzle” items that will help sell this house! 🙂
I was very surprised that it was left there.
Hey Danny,
Really enjoying the blog – good stuff, keep it coming.
I have a quick question – I’m assuming for you to formulate your offers during the first call, you have to know an estimated ARV. But, how do you figure this out so quickly? And definitely let me know if it all doesn’t take place on the very first call. Thanks!
Coy,
Great question. I rarely make any kind of offer or ballpark on the first call. The only time I do this is if the lead is for a house that is very similar and in the same area as a house I recently analyzed and then it is just a ballpark until I can see the house. So no, I do not usually figure it out during that initial call. If they don’t seem motivated, I tell them I will call them back very shortly and let them know a rough ballpark figure then. I try to get back quickly as I don’t want them calling all of my competition.
Looks like a real nice house that just needs some freshening up.
I’m starting a bandit sign campaign this week. I need to get some deals like this one!!!
Matt,
You are correct. It is a super easy rehab and will be on the market very shortly. With the bandits, code compliance was starting to contact me so I am laying low for a little while. I will certainly be putting some more out soon though. Good luck. I hope you get some homeruns.
[…] rehab on the Def Leppard House is being wrapped up and should be finished next […]
Looks like a great rehab. Would you mind sharing who you use for hard money lending?
Thanks, Melinda.
I use private lenders that I have developed relationships with. I’ve considered writing a post about this, just have not gotten around to it. Hopefully I will soon.
Great, looking forward to it! Keep up the awesome work.
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