We bought this outdated & uninhabitable 2BR 1BA 800 sq ft SFR in Smyrna, GA on May 10th, 2017 off the MLS. It was listed for $68K and had multiple offers with a highest and best situation. We paid $73,800 cash for the house. This was about $10K higher than I felt the property was worth in the condition but with tight inventory I am willing to take a smaller profit. I also knew this area well and knew I can sell it quick with no problem. Since the buyer told me they were purchasing this property as a buy and hold to add to their rental portfolio, I asked the buyer if he would let me market the property to find a tenant. The buyer agreed and this allowed me to keep 1st month’s rent for finding the tenant. This allowed me to make some extra money on the deal ($1,320). When the margins are tight you have to be creative to generate extra income of the same deal.
Demo started on May 22nd and took 45 days to completion. We completely gutted the house and gave it a new functional modern interior layout. We added a private driveway; previously the property had an easement and shared the driveway with 2 other neighbors. We added a patio slider door and created a deck, we put the water heater in the attic to maximize square footage of the house. We added a new HVAC system previously house had no heating or cooling. We had to do all new plumbing and electrical throughout the entire property as well.
Our comps in the neighborhood were between $125K-$135K. By re-configuring the entire interior and adding value with our rehab we decided to push the comps and list at $150K. We accepted an all-cash offer of $140K after being on the market for 3 days. The cash offer was the winner because we did not have to have an appraisal and it was quick close 15 days. We could have sold the property for $5K higher is we went with a financing offer.
Here are some detailed numbers for you to see regarding the project. We had initially budgeted $30K for the rehab but actuals came in at around $38K. What put us over the budget was not expecting to put a new asphalt driveway ($2.7K), not expecting to do all new plumbing & electrical, not expecting to do full gut on the interior (WOOD is EXPENSIVE!).
mages of the project can be seen here (click here) > REHAB FINAL IMAGES
Check out some before and after pics below. If you have any questions regarding the project let me know, will be glad to answer for you. Also leave a comment about your favorite aspects of the re-design or what you would have done differently.