House #18: Rehab Complete

September 17, 2010 · 3 comments

We finished the rehab on The Haggle House earlier this week (total of three days), got some appliances installed yesterday, and are finishing up the cleaning today. We’re planning to start looking for renters this weekend…

This was our smallest and quickest rehab yet (as it’s our first rental property and the goal wasn’t to do a massive rehab). Our anticipated budget for this rehab was $5500, and we actually came in a few hundred dollars under budget:

Final Budget

While I couldn’t get very good pictures while the cleaner was in the house today, here are some not-so-good pictures

3 responses to “House #18: Rehab Complete”

  1. Marcus says:

    it’s a shame that house in the flood area you were talking about it is a nice house.

  2. chris says:

    the house looks great instead of renting and selling later on why not do another rent to own house and set the price for what you wanted to get after renting for a few years you avoid the fix up for resale again and you control the deal by picking you tentant .
    and also a thought why not work with the special downpayment programs for low income offering them houses great houses at a great price i know you worked with them before find out what there looking for prices and location and find that house . many private owners dont want to work with them because of the hassles but you become someone they can work with .
    are the prices getting lower because of the food houses and is now the time to start picking up great deals you are doing a great job keep up the good work

  3. J Scott says:

    Chris –

    I don’t really like to do lease options at prices much higher than the current market value. First, you run the risk of the value not increasing fast enough to support an appraisal down the road (in which case you need to lower the price or be willing to take your buyer’s money, neither of which are great options). Second, there is less incentive for a lease-purchase tenant to stick out his entire lease if he doesn’t see the market price approaching the option price fast enough throughout the lease. I’d rather hold for a couple years and then either sell or lease-purchase when we’ve already seen some appreciation…that’s just more to my comfort level…

    As for working specifically with NACA buyers (I assume that’s the program you’re referring to), we’d LOVE to do that. Unfortunately, NACA has some very strict rules about buyers not finding properties (or even working with agents/sellers) until they have been fully approved for a loan. While we could fudge our way around those rules, it’s at the risk of the buyer not getting approved (if they find out), and we don’t want to take that risk. That said, we’re always looking for ways to market to these buyers, and we know a couple agents who specialize in NACA clients, and we always make sure they are familiar with the houses we have listed.

    As for flood houses, see my post about House #19! 🙂

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