We’re going to fast forward to the “now” and will share our other house stories from the past in the future! We weren’t really looking for another rental property at this time, as we are in the middle of a live in flip, BUT a live in flip only brings in revenue if you sell. A rental would bring in revenue as soon as it becomes available through the passive income. So, we had been “loosely” looking at properties on the MLS and through sites like realtor.com and trulia.com, when we spotted this potential single family home that met the criteria we look for!
Things we look at when buying: concrete slab foundation, small square footage, a lot of renovation, low cost, & a Chevy in a Cadillac neighborhood! If you’d like to know the “why’s” to these items being part of our criterion, send us a message or drop a comment below letting us know!
When making our offer, we went in strong, with no contingencies, waiving inspection, and paying closing costs. We know enough now what to look for when walking the property and how to address any issues we come cross. In this case, termites, signs of mice issues, and roaches could be found throughout the home. Thus, hiring a professional exterminator was our next call.
Our plan for this property will be to tear out and renovate the kitchen and bathroom completely! This will include new cabinets, counters, backsplash, and appliances. The bathroom with get a new tub and surround, vanity, mirror, and medicine cabinet. The entire house will get new wood plank vinyl flooring, new frames and baseboards, and fresh paint throughout.
The drywall was never finished with tape and mud so that problem will have to be fixed. They filled the space with trim instead of finishing out the drywall correctly. We will need to tear out the wood paneling and install drywall in the rear entryway. Since space is limited and lacking storage space, our plan is to build in a pantry in the rear entry way.
Major cap-ex items will include the roof and windows in the living room and kitchen. Some smaller items we’ll do is replace the shutters, power-wash the siding, clear out the trees growing in the fence line, landscape, and re-side the mini barn in the back yard.
You can find out more about capital expenditures and what to look for when purchasing a property by listening to podcasts such as BiggerPockets, Real Estate Rookie and BiggerPockets Money.
This is how Danny and I learned SO much about real estate!
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