Acquisition – 422 S. Gaston St

Estimated ARV - $149,000

Rehab Cost - $45,000

List Price - $89,000

At first glance, this might not seem like a deal to most people. After Realtor fees and unforeseen expenses, this property could LOSE money. That's what most people would see, unless you realize "list price" isn't the price you offer or pay. Of course, "rehab cost" will usually miss at least a few items you weren't expecting.

My first offer was $39,000 and the property went under contract for $44,000. Just because the asking price was nearly $90K, doesn't mean anything. The offer price must be what YOU can afford to pay. It has nothing to do with value or asking price.

Actual rehab costs, including buying an enclosed trailer and a few new tools, were a little more than $55,000. After purchase, rehab, and holding cost, the property cost $105,000. With 6% Realtor fees and closing costs, the estimated ARV of $149,000 would leave $33,500 profit.

This wouldn't be a bad deal and provides an ROI of 31.9%.

We did better...

The actual sale price of the house was $169,900 with sellers paying $5000 in closing costs. The check was more than $152,000. Thats a profit of $47,000 and ROI of 45%.

The house was on the market three days when the full price offer was received.

Any deal where you walk away with nearly $50K profit can't be a bad one.

Remember... list price has nothing to do with the house value.

Remember... you offer what the house is worth TO YOU.

Remember... don't let the list price determine the price you offer.

We Buy Houses ME Rehab

Rehab – 422 S. Gaston St

Rehab

422 S. Gaston St.

The floors were restored to their original glory, after removing linoleum and glued down carpet. Holes had to be filled and nearly 90 years of damage was sanded away before putting the shine back. This was a process that took several days and included commercial equipment, sanders and oil-based varnish.

Most rehabbers use water-based products for multiple reasons including cost and ease of use and cleanup; however, nothing beats the finish and durability of oil-based varnish and clear coats. The final product is well worth the extra cost and work, but most things are.

We Buy Houses - Rehab - 422 S. Gaston St.

Rehab – 422 S. Gaston St

Rehab

422 S. Gaston St

Uneven floors, ceiling tiles, broken cabinets, SEVEN layers of linoleum in the kitchen, rotted bathroom floors, broken windows, clogged drain lines, leaking roof, holes in the ceilings, and much more; these were just some of the things encountered during this rehab. Every window was replaced, all plumbing supply and drain lines were replaced, from the city supply meter to the sewer drain lines. Floors were jacked up and all the drywall was replaced throughout the house.

Ceiling tiles were removed and the low ceilings (under 7 feet) were raised before insulating with R30 and covering with 1/2-inch drywall. This was done along the entire back of the house, where the roof sloped from 8 feet to just under 7 feet. The snack bar was removed and the kitchen/dinning room were joined to allow for a larger feel. The door was closed and another was opened from the hallway, allowing entry to the kitchen without going through a bedroom.

Seven layers of linoleum were removed from the dinning room and kitchen floors. Some looked to date back a long way, maybe to the original construction or shortly after.

Keep watching for more updates and photos.

We Buy Houses Rehab 422 S Gaston St