This was a moderately heavy rehab project. The house was in very rough condition due to years of total neglect by the owner. We purchased this property directly from the owner subject to a institutional first, institutional second and a hard money third. We closed in 7 days, with cash through an escrow company with title insurance and all the normal purchase procedures. This owner was in major trouble as the hard money third was in foreclosure, the institutional first and second were behind but not yet in foreclosure and there was an open code enforcement file for substandard condition and drug activity. This property is in an good quality family neighborhood in Los Angeles County and really "dirtied" up the neighborhood.
We remodeled this property from the ground up. The repairs were, new roof, new electrical panel and complete rewire, minor re-arrangement of interior walls to improve flow of house, gutted the kitchen and bathrooms and replaced all vanities/cabinets, granite and stainless appliances, new flooring of carpet in the rooms and wood flooring everywhere else, replaced every door, window and all accompanying hardware, four color interior and 2 color exterior paint, and front/rear landscaping. It was a brand new house from the ground up.
All in all it was a 6 month turn from acquisition to close of escrow on the sale.
Fun times on this project all the way around.
The numbers (rounded) were:
Subject to a $66,000 first, $48,000 second and a $110,000 hard money third. A total of $224,000 in existing mortgage debt. We wound up giving the owner 91,000 cash to her existing loans. The repairs ran us $55,000, the holding costs ran $14,000 and the sales costs were $42,000. The sales price was $499,000 which left us a profit of $73,000.
Here is a SLIDESHOW of the before and after pictures. I'm still working on my camera skills so bear with me.
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