Student Rehab Story, 5204 Wesley Rd – Final
C’mon! Bring it on! I’ve got to hear your comments on this one. My student Joann is psyched. I’m psyched – our banker is foaming at the mouth, our contractor wet himself – we’re just damn giddy over 5204 Wesley Ave. The results are beyond our wildest dreams. Now pray to the RE gods for a buyer with credit.
Talk about a trash-formation, uh….transformation! This complete-gut rehab turned out so much better than I could have dreamed. There are plenty of pictures below, but lemme’ tell ya – they simply do no justice to being there in person. The place is truly amazing.
My student Joann has turned out to be a complete pro. From picking the colors and the finishes, to design ideas, to working the contractors – I think she’s a natural. RE investing is not for everyone. Some people are naturals, some learn to be great, and some just can’t stomach the pressure and the roller-coaster. Joann is a pro.
This was an $80,000 rehab that was completed on time and on budget. In fact, our contractor completed the job in just at 3 months.
Click Here for the 1st installment of the story
So what did we get for our 80-large? How about all new EVERYTHING! Starting with six 30 yard dumpsters of trash and debris, a new porch, new roof, new and larger dormer, new framing, new windows, insulation, new plumbing, electric and HVAC. The entire house was sheetrocked, and a bathroom was added to make two full baths. We increased the ceiling height of the 2 second
story dormer rooms, and we pushed back the walls to give them a bigger feel. We added a sweet kitchen, 2 new stairways, all new lighting, and we tightened up the landscaping by adding a few beds, new sidewalks, and grass seed.
Gee’s 80-grand adds up fast huh?
Look at the place! Its an insane change, is it not?
Its now on the market at a very fair price of $204,000. (UPDATE – $199,900) If a potential buyer walks into this house, and they have a budget of 200K, I have no doubt they will fall in love.
THE SUCCESS FORMULA
Your challenge in this market and the secret to success is as follows: You MUST create OVERWHELMING VALUE. Average is no longer acceptable – not in this market. The MLS is littered with average listings.
First you have to first find deals in areas where people want to live. There are many places in the City where homeowner’s are no longer buying. I’m telling my students to stay away from anything that ends in Park or Hill – i.e Federal Hill, Reservoir Hill, Patterson Park – etc. Those places are not hot! They’re played out!
Second, you must buy your deals right! If you’re not buying at 60% or less on the dollar (minus repairs) – you’re paying too much and you’re setting yourself up for sure failure. Be patient. Great deals are out there!
Third, you have to do a rehab on a budget that will allow you to sell the house for LESS than the comps in the neighborhood. That’s right! Not only do you have to make the house super-sweet, then you have to turn it around and sell it for less than the others in the neighborhood.
Its fun being an RE Investor, huh? Sure – its just like “Flip This House!”
Click on the tasty toilet below for all the juicy “AFTER” Pics!