The Neighbor House: Before Pics
Here are some BEFORE pictures of The Neighbor House:
Front of House
Back of House
Dining Room (from Living Room)
Living Room (from Dining Room)
Kitchen
More Kitchen
Master Bedroom
Master Bathroom Vanity
Master Bathroom Shower/Toilet
Guest Bathroom
Basement / Bonus Room
Two Car Garage
{ 11 comments… read them below or add one }
This looks like a typical middle-class house, cabinets are a bit dated and the garage appears to have some oil stains but otherwise looks fine. I’m curious where the profit margin is on a rehab like this?
Matt -
Comps in this neighborhood are in the $120-130K range, for a nicely remodeled house. We essentially have two choices:
1. Full cosmetic remodel for $30-40K, which should leave us $20-30K in profit; or
2. Minor cosmetic remodel for $20-25K, sell for $20K below market, and make $15-25K in profit.
We still need to do a bit more research and analysis before we solidify those numbers and make a decision on which way to go…
I cannot believe how many of these floor plans you have done. Is this all they built in that area?
If you don’t mind me asking, what kind of figures or data are you looking for that will tell you whether to go in one direction or the other?
Also, before you purchased did you find comps in the area that will support (for an appraiser) your ARV in 90 days or more?
J, what kind of figures/data are you looking for that will tell you whether to proceed with one rehab or the other?
Where is the mold?
Of the comps you found did anything sell in the last 3 months?
Also, what kind of data do you look for to decide wether to go into one type of rehab or the other?
I have wondered about this also as some properties would not require a major rehab to make marketable.
Thanks,
Good luck
Luis -
No mold in this one…in fact, it’s nearly move-in ready. Just needs new paint/carpet and cabinets, plus we’ll upgrade all the lighting and plumbing fixtures while we’re at it.
As for comps, there is one in this neighborhood that sold for $145K last month, plus The Poor House will be a comp at $135K. So, we think we could realistically comp out at about $140K, even though we don’t expect to sell it for that much.
As for how we decide which to proceed with, we do a bunch of these floor plans in this area, and if we can get one renovated and listed at $125K for our typical profit, we’ll buy it. These houses rehabbed and listed at that price sell quickly…
Want to detail how you would spend $20-$30k to rehab that to sell? Only thing I could see would be new cabinets in kitchen.
Hey Jennifer -
Here’s what I would do (and will do if we can’t sell it as-is):
Verify HVAC/Plumbing/Electrical is all working properly
Paint (interior/exterior)
New cabinets
New appliances
Replace light fixtures
Replace plumbing fixtures
Replace carpet/vinyl (though could probably get away with not replacing)
Repair/replace a couple old windows
Get roof/gutters checked out and replace if necessary (not sure if it is)
Make sure garage doors/openers are in good shape
The key is knowing the right paint colors, fixtures, and cabinets to purchase and I’m sure you agree that J Scott and wife are good at it.
It would be nice if there was a decor thread here where we could all share what buyers have gotten emotional over.
For instance, we’ve been installing Brazilian Cherry laminate floors from Sams and the buyers love them. The price is about $1.57 per sf plus transitions.
Mark -
Great idea! I’ll post a couple of the finishes that I use and really like and open it up to other suggestions as well…thanks!!!