Market 2, update 07
Things are really starting to come together at my second house on Market Street. We just finished week 11 and its starting to look like a home again. Let me back up a bit. On week two we ripped it down to the studs or the lathe in most of the house, in order to change the layout of the house. We removed the bathroom, added a closet, did all new plumbing, removed a chimney, added a whole new bathroom in a new area of the house, repaird the foundation, rewired most the whole house, and a million other things which really didn't change the look of the house.
So basically we've been staring at old studs and lathe boards, and some crappy plaster here and there for the last 11 weeks. Well finally we're drywalling like madmen and we got the bedroom drywalled and most of the dining room drywalled this week. It's finally starting to look like a house again, instead of a demolition site! That is exciting, because I can actually start to see the end of this project approaching. We've still got a LOT of work to get done, but at this point theres much less to do than we've actually done, so thats nice knowing we're way more than half done and on our way out.
I'm pushing to have it rentable by May 1st. There is a lot of outside work to be done, but I'm hoping to get the inside all done by my May 1 deadline, and then we can put siding on the outside and do something with the front porch. It will be very rewarding to have completed this house, because it was such a big and challenging project, I now know that no matter what, I will always be able to make money in this industry, provided I buy houses that need everything done to them, if bought at this price.
I've now experienced both sides of the spectrum of purchasing investment property. You can buy a house that only needs a little work, or you can buy one that needs everything. There's pro's and con's either way. On the former, you can get it done in a month or so, and get it rented and start making money right away. With the latter, sure it takes a lot longer to get it done, but you can pay yourself a salary to fix it, and everything is brand new when your done. You won't be able to add as many houses to your portfolio annually doing it this way, but I think the flip potential is much higher. Also if you buy a home for very cheap, your taxes will be lower as well.
I'm hoping to find deals that aren't as bad as Market 2, but not as nice as some of the other ones I bought. Somewhere in the middle. A 2-3 month project I think will be ideal. That way I can redo most the finishes of the hosue, like new siding, new flooring, paint, and maybe renovate the bathroom/kitchen, etc. But not have to completely build a house from scratch practically like we are on this one. Would I do another house like this one? You bet. Its going to cash flow great and not need any work for a long time, so I still think its a good invesment.
So basically we've been staring at old studs and lathe boards, and some crappy plaster here and there for the last 11 weeks. Well finally we're drywalling like madmen and we got the bedroom drywalled and most of the dining room drywalled this week. It's finally starting to look like a house again, instead of a demolition site! That is exciting, because I can actually start to see the end of this project approaching. We've still got a LOT of work to get done, but at this point theres much less to do than we've actually done, so thats nice knowing we're way more than half done and on our way out.
I'm pushing to have it rentable by May 1st. There is a lot of outside work to be done, but I'm hoping to get the inside all done by my May 1 deadline, and then we can put siding on the outside and do something with the front porch. It will be very rewarding to have completed this house, because it was such a big and challenging project, I now know that no matter what, I will always be able to make money in this industry, provided I buy houses that need everything done to them, if bought at this price.
I've now experienced both sides of the spectrum of purchasing investment property. You can buy a house that only needs a little work, or you can buy one that needs everything. There's pro's and con's either way. On the former, you can get it done in a month or so, and get it rented and start making money right away. With the latter, sure it takes a lot longer to get it done, but you can pay yourself a salary to fix it, and everything is brand new when your done. You won't be able to add as many houses to your portfolio annually doing it this way, but I think the flip potential is much higher. Also if you buy a home for very cheap, your taxes will be lower as well.
I'm hoping to find deals that aren't as bad as Market 2, but not as nice as some of the other ones I bought. Somewhere in the middle. A 2-3 month project I think will be ideal. That way I can redo most the finishes of the hosue, like new siding, new flooring, paint, and maybe renovate the bathroom/kitchen, etc. But not have to completely build a house from scratch practically like we are on this one. Would I do another house like this one? You bet. Its going to cash flow great and not need any work for a long time, so I still think its a good invesment.
posted by Joel Huenink at
12:40 AM
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