We just picked up House #12 this week…
It’s in a part of town that we haven’t purchased in before, mostly due to the fact that there is such a surplus of inventory in that area that little is moving and prices are continuing to drop. So, you might ask why I decided to pick something up there now…
And the answer is: I don’t know. 🙂
I took a look at this house last week, and its had three characteristics that stuck out at me:
- It is small (hence, “The Mini House”)
- It is cheap
- It needs little work
Okay, it’s not that small; but it seems really small. It’s a 3/2 with a full garage built in 1993, and it probably encompasses about 1400 square feet. The fact that the kitchen is situated right in the middle of the house (open to pretty much all sides) is probably what makes it seem small.
And it’s really not that cheap. It was listed for $56K, and we picked it up for $50K. By our standards, that’s not tremendously cheap, but given how little work needs to be done, the all-in cost is very low.
We believe that we can get this into resale shape for about $5-10K. I’m not sure exactly what we’ll do yet, but it will likely be paint, carpet, and fixtures (both light/fan fixtures and plumbing fixtures).
If we can turn around and sell it for even $85K, we should make our desired $15K profit, and it’s not unlikely that we could get closer to $90-95K if we’re lucky. There’s only one other house for sale in the subdivision, and it’s listed at $109,900 (and has been on the market for over a year). But, it’s a very cute little neighborhood, and a very cute little house.
We may also end up partnering on this house with another couple — investor friends of ours — so all-around this project is going to be a good bit different than our previous projects.
I’ll post some pics and have more information next week after we’re through due diligence and we’re certain that we’re moving forward with this one…