If you are reader of my blog, you will know that our main business is hard money. When I do a hard money loan, I am always thinking of the worst case scenario; that one of my clients is not going to finish the job and I'm going to have to complete the rehab in order to sell the property or rent it out.
I think that everybody needs to put their money where their mouth is so what I decided to do is to buy a distressed property and do a rehab project myself from A-Z. Here is the deal that I put together;
$262,000 - Purchase Price
$49,258.25 - Construction Costs
$449,000 - List Price
The property is a 2,642 square foot single family home. This house consists of 5 bedrooms, 3 bathrooms and an office/optional bedroom. The property was built in 1997 but was very abused since it was built. This lot is zoned RS4 meaning it is zoned for four units. The house has a detached garage that has been converted into a 2 bedroom 1 bath house that can be easily converted back into a garage. This property has an incredible 270 degree view as well.
This property sits on a 55,000 square foot lot (1.27 acres). Most of the time when I see that there is a property with such a large lot, the case is that the lot is not buildable. This particular lot is graded and sits below grade of this house. In theory, if you were to build another house on that lot, you would not be side by side with your neighbors. I like these types of properties because the buyer has the opportunity to possibly subdivide in the future and either build another house or sell the lot. The lot that is attached to this house would sell for $50,000 right now but much more in the good times. This is a potential retirement plan for the person that decides to buy this house.
Here are some pictures of the completed product;
http://sequ.com
I think that everybody needs to put their money where their mouth is so what I decided to do is to buy a distressed property and do a rehab project myself from A-Z. Here is the deal that I put together;
$262,000 - Purchase Price
$49,258.25 - Construction Costs
$449,000 - List Price
The property is a 2,642 square foot single family home. This house consists of 5 bedrooms, 3 bathrooms and an office/optional bedroom. The property was built in 1997 but was very abused since it was built. This lot is zoned RS4 meaning it is zoned for four units. The house has a detached garage that has been converted into a 2 bedroom 1 bath house that can be easily converted back into a garage. This property has an incredible 270 degree view as well.
This property sits on a 55,000 square foot lot (1.27 acres). Most of the time when I see that there is a property with such a large lot, the case is that the lot is not buildable. This particular lot is graded and sits below grade of this house. In theory, if you were to build another house on that lot, you would not be side by side with your neighbors. I like these types of properties because the buyer has the opportunity to possibly subdivide in the future and either build another house or sell the lot. The lot that is attached to this house would sell for $50,000 right now but much more in the good times. This is a potential retirement plan for the person that decides to buy this house.
Here are some pictures of the completed product;
http://sequ.com
