Before and After Video of Rental Property Number 8 Rehab

27 Feb
Before and After Video of Rental Property Number 8 Rehab

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rental property number 8The repairs are complete on rental property number 8!  For more information on rental property number 8, the details of the purchase are here.  I bought the home for $97,500 with the seller paying $2,000 in closing costs.  I was hoping the home would rent for $1,200 or $1,300 when I purchased the houses and now I am thinking I may ask $1,400 a month for it.  We will see if I am being a little too aggressive with the price, but there are very few homes for rent in the area.

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The before video of rental property number 8

Here is the video of the property before we did any work to the home;  Rental property number 8 before the rehab.  The house was not in horrible condition, but needed paint, floor coverings, light fixtures, drywall repair and we added a fifth bedroom in the basement.

The after video of rental property number 8

Here is the video of the property after the rehab; Rental property number 8 after the rehab.  As you can see we painted everything, put in new fixtures, refreshed the kitchen, put in new carpet, added the bedroom and did a few more things throughout the home.

Renting rental property number 8

We are going to list this home for $1,400 a month in Craigslist, post it on Facebook and see what happens.  I am hoping we can get it rented quickly; I know there are many people looking for rentals in the area.  I am also listing rental property number 9 for $1,400 and it looks like our tenant for rental property number 6 is moving out and I will post that one as well.  It was rented for $1,300 a month and I think I will post it for $1,400 a month as well.

Moving forward with my rental properties and fix and flips

Rental property number 10 is under contract and I am continuously looking for more properties.  We closed on a fix and flip yesterday that was left over from before I took over the business from my parents.  I still have one fix and flip from before I took over the business that we are listing that we are listing next week.  The fix and flip that I wrote an article on here is finally ready to go and we are going to list it today.  Two more fix and flips are being repaired and another that was included in this post is under contract and set to close in a few weeks.   I am still looking for more fix and flips as well!

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13 Comments
  • Jun
    Posted at 18:30h, 27 February Reply

    Hi. I am Jun in Maryland. I happened to visit your website and realized many people were doing same thing out there. I started investing residential real estates two years ago and was targeting to have 25 (I don’t know why I picked this number) rentals in 10 years. I got two now and working on the third but the market has been improved dramatically over the 1 year, it is hard to find the deal. You are absolutely taking advantage in market as a full time Realtor. I am regular salaried person but have an access to internet during work hours^^.
    Market near DC area is kind of expensive. My target is $250K-$350K townhomes (single family as rental is not very popular^^). Although I can find condos below $200K, I prefer townhomes to accommodate families. One question I would like to ask you is why your target price range is around $100K. If you have enough resources, why not buy one $300K home over three $100K home? You can deal with less number of tenants (issues^^) and high incomer tends to keep the property nicer. Of course if tenants don’t pay the rent, you will lose lower rent per month as well as rental loss with vacancy is limited. Is this main reason?

    • investfourmore
      Posted at 19:04h, 27 February Reply

      Hi Jun, Thank you for the message. In my area the higher you go in price the less rent you can charge compared to the price of the home. A $300,000 home would be hard to rent for much more than $2200 at the most, but I can rent my houses I buy for under $130,000 for $1,300 to $1,400. My returns are much better on the lower priced homes and the market is stronger for rentals in that price range as well.

  • wanm
    Posted at 03:33h, 28 February Reply

    How much did you spend on the reno and how long does the project takes to complete?

    Do you hire general contractors and you would tell them what to fix and what material use or merely they would fix for you?

    • investfourmore
      Posted at 16:45h, 28 February Reply

      I actually don’t have the bill for this reno yet. I usually get a bid before hand, but things were so crazy I forgot about it and our contractor didn’t get me a bid either. I am hoping less than $15,000. I highly suggest not handling contractors this way! I hire a general or a handyman team. at this point we give them basic instructions and they know what to do. In the beginning we tell them all the materials to use and exactly what we want.

  • Lucero Sanchez
    Posted at 18:18h, 28 February Reply

    Hello Mark my name is Lucero from AZ I saw your post on Biggerpockets.com but I was unable to comment there, so I’m leaving it here ;) Great job it looks really nice! my husband and I have a goal to have at least 10 rental properties free and clear by the time we are 50 yrs old we are 35 now and so far have our primary residence paid off and a rental property also paid off, I was hoping maybe you can give us some advise, here is our situation like I said we have 2 houses paid off one is appraised for $250k (our primary residence) and the other $120k (rental property which gives us $880 per month) what would you do if you were us to make it to our goal?? We are not scared to take risks my husband has built a house from the bottom up so he can do all the construction and we were recently qualified for a FHA loan for $200k and we owe about $25k in credit cards and a loan. What would be your plan of attack? I has taken us 12 years to get to this point, what would you do to get there faster (the goal)? I hope you can give us advise or maybe guide us thanks so much.

    • investfourmore
      Posted at 19:30h, 28 February Reply

      Hi Lucero, I wish bigger pockets still let regular members post on the market place posts. Have you thought about refinancing your personal property? I know it probably took you a while to pay it off, but that is a huge resource for new down payments. I am guessing your biggest issue is finding cash to buy more properties?

      You have to be careful when you do this. 1. If you refinance for the most you can qualify for then you won’t be able to qualify for a new rental property loan. How much are your monthly payments on the credit card debt and the other loan? What are those interest rates? You may be able to take out around $100,000 on your primary residence. Pay off those credit cards, have down payment money left over to purchase more rentals and not have much more of a monthly payment then you do now once your credit cards are paid off.

      Then you can focus on using your cash flow from the rentals to 1. buy more rentals as quickly as possible until you get to 10, then start paying off loans on them with cash flow. 2. pay off rental properties now to increase cash flow.

      TO get to your goal of ten the quickest, it may make sense to use your cash flow to buy more rentals now and wait to start paying them off until you get 10 properties.

      Make sure you talk to a lender in your area to make sure this plan is feasible, you may have to find a portfolio lender.

  • Ayo
    Posted at 14:07h, 16 July Reply

    Hello Mark!

    Great articles, very inspiring. I have a ton of questions.

    I’m from PA. I bought a duplex back in May 2012 for $154,000 cash. I rented out the 1st floor for $850/month and my wife and I live upstairs (2nd floor). My wife and I want plan to buy more properties and have money work for us and not the other way around. I managed to convince my wife that we should buy another investment property instead of buying a single family house for ourselves. We want to buy another investment property(duplex or triplex) and rent out the 2d floor in our current duplex.

    We are currently looking for a 2 bedroom apartment to rent while we buy properties and build our assets/wealth. I don’t have cash to purchase another property and I wanted to know if using a Cash Out Refinance was a good idea since I have equity and no mortgages.

    • Mark Ferguson
      Posted at 16:04h, 16 July Reply

      Hi Ayo,
      run the numbers and make sure you still have plenty of cash flow if you do a cash out refi. You don’t have to take out the most you can with a refi, but it may be a great way to buy more properties that will make you much more than the cost of the refi.

      • Ayo
        Posted at 03:33h, 17 July Reply

        How about if I did a home equity loan? I spoke to someone from PNC and was told I could get $130-$140 thousand.

        • Mark Ferguson
          Posted at 18:53h, 18 July Reply

          Yes, you could do that too, but you will have to pay it off sooner than a refi.

  • Jake Humbert
    Posted at 04:35h, 19 July Reply

    Hi, Mark! I have enjoyed reading several of your articles after just finding your site tonight. Do you know of any good portfolio lenders in the Denver/Littleton area? Thanks for your time!

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