340 Taft House

We purchased this REO property in August from a bank. It is a 2 bedroom, one bath home. About 1200 square feet. Cost was$23,000

Before pictures are at the bottom of this article.

We plan to re-hab the house at a cost of $10,000. The city made us rebuild the meter loop at a cost of $1,400. You can expect more of this requirement as cites upgrade to smart meters. We will texture and repaint all the walls and ceilings. The kitchen cabinets will be repainted and they will get new counter tops. We removed an extra door that went to a bedroom so that more kitchen cabinets could be added.

The hardwood floors will get sanded and resurfaced. Windows will be painted and re pointed. All light fixtures, plumbing fixtures will be replaced. Smoke detectors will be added. A new hot water heater and a new wall mounted A/C unit will be added. Outside will get siding repairs, a new patio cover, a new garage door, a new patio slab, the storage room floor repaired and maybe a new front door. Fences repaired and landscaping will be cleaned up.

The house will rent for $750 a month. The total cost with repairs about $35,000 annual income $9.000 Taxes are $1,200 a year,  insurance is $650 Net income is $6,650 a year. Property value based on comparables is estimated to be $75,000 (after the rehab work is done). That will give us a 20% annual return cash on cash.

We will refinance the house to take out $40,000 cash to do another house. The payments on this loan are estimated to be $334 a month. Our net cash flow will be $2,640 a year after refinancing. As we will have no cash in the deal after refinancing the return is 100% a year cash on cash.

Work was started on 11-20-2011 we will rent the house on 12-10-2011 (occupancy starting 1-1-2012) for $700 a month, a $300 deposit. The rent will increasing the second year to $750. a month. Having a tenet to move in right away is worth taking the $50 off the first years rent.

Looking from living room into kitchen area, cabinets will be cameo white inside and out, counter top will be ceramic tile a green marble color, walls will be a medium green above wainscot with paneling below. Ceiling will be off white.

Looking from kitchen into living room. The stove will go on this wall, with a 30” cabinet added, then the ice box on the right. We added a 5' stud wall here and sheet rocked it, alimented a door going from the kitchen into the back bedroom, the opposite side of this wall will be a second closet for the bedroom.

This is the back bedroom. The unframed opening is the old door going into the kitchen. It is now another closet which the room needed, the back wall for this closet improved the kitchen layout.

Front bedroom. Like all the rooms we sanded all the long leaf pine woodwork. We will make any patches the sheet rock needs and texture then paint a light beige color. Wood windows where sanded and will be painted with enamel in white. Floor will be sanded and re-stained then sealed. New plus and light fixtures will be added.

The rear of the home will get a new patio cover, new patio slab, fence repairs all around, and some tree trimming and other landscape clean up.