This 1911, Craftsman, 3/1.5, 1365 sf, we acquire through one of our LLCs. We found it in foreclosure and bought it at auction on a Friday in January. One person was ‘living’ in it with no heat, no lights, no furniture except one couch in the living room. He agreed to vacate the following Monday, which he did.
This old, neglected house was located on the corner of a residential street diagonally from a local grade school. The main part of downtown is only a few more miles to the north and there is a sizable park down the street to the east.Within walking distance are shops, banks, food and a bustling main road, with ‘the mall’ and two freeways about a mile away.
Purchased at auction for $80,500.Financed with 80% hard money, 20% SDIRA.Repairs of $61,300 financed from private loan.
At first it seemed to be a tired, neglected, worn out, cold, wet and dreary old house that had seen better days.But it had ‘good bones’ with sturdy old growth timbers.It had two floors and a full unfinished basement.The entire property needed a lot of TLC. So we went to work!
Our contractor/consultants told us what various approaches would cost…refinish the hardwood floors or carpet, finish the entire basement or part of it…and we agreed upon a scope of work within days of purchase.
Repairs included repainting existing kitchen cabinets, installing granite counter tops, new ceiling lights, and stainless sink. Replaced appliances with used but nice ones due to lower market demands.Installed carpet in living room and bedrooms; new master bath on main floor. Upstairs needed painting.Reused an old door found in attic to separate part of the attic storage from the upstairs room. Basement had a bathroom present but not connected or walled in. We did that and sheet rocked more walls, stairwell, created two rooms and a large main living area and carpeted entire living area of basement. There was still a quarter of the basement for storage so we walled off that area and installed a door to the storage room.Roof was ok, needed cleaning, installed gutters, and drainage. Repainted outside large deck and bolted it to main house.New paint inside and out. Landscaping included cutting bushes way back to reveal house and windows, and a walkway in back yard; placed decorative plants in flower beds along two sides of house. Painted detached one car garage to match the house, installed gutters, cleaned roof, cut back hedge. Pressure washed back fence.Repaired breaks in sewer line to back alley.
The result was transforming a 2 bed, 1 bath into a 4+ bed, 2 bath with 72% more useable living space and shop and storage.
Repairs took 8 weeks per contract. Clean up, staging and listing followed immediately. The day we listed several neighbors came by and thanked us for renovating the house in their neighborhood. They’ve been watching it fall into disrepair for years. Five hours after listing, a young couple with a baby made us a full price offer of $205,000.We took it! Closed in 21 days.