BELLTREE REHAB PROJECT

My partner and I purchased a property via a short sale a little less than a year ago. The appraised value of the property was approximately $160,000.00, after several offers and counter offers with the lender we were able to purchase the property for $104,000.00. We accessed the house before hand and estimated $8 - $10,000.00 of rehab which put us at right about 70% ARV, so the numbers worked out in our favor to make it a equitable deal. When we were negotiating with the bank on the short sale, we actually submitted the retail cost to rehab. That retail cost for rehabbing equaled $23,543.

Before we submitted an offer to the lender we went through the house and determined what we were going to replace and what we were going to leave alone as well as the cost. Carpet and paint are almost always going to need replaced, this was a 2000 sq. ft. house so the carpet ended up costing us right around a $1000.00 and the interior paint was about $1500.00. There was also a $600.00 fee from the contractor for removal and labor for carpet, wallpaper removal, vinyl/sub floor removal, counter top removal, and kitchen cabinet removal.

The number one thing to sink your money into when rehabbing is the kitchen and bathrooms, that is what women want and women buy houses. Buyers always focus on kitchens and bathrooms so if you want to sell your house quickly you better make sure they look very incredible.

Let’s start with the kitchen the counter tops were a style that was popular in seventy’s so we definitely decided to replace them with tiled counter tops which ran us about $300.00. The cabinets were old and out dated so we had them removed and new cabinets put in which was another $800.00. The kitchen light fixtures as well as the hall and bathroom light fixtures also were replaced for $350.00. We put all new appliances in the kitchen (stove, frig, dishwasher) mostly because the appliances were very old plus we didn’t want the kitchen to look partly new and partly old. The tile on the floor looked ok so we decided to just clean it thoroughly. We spent the most money in the kitchen since it is the biggest selling point in the house.

The bathrooms were next this house had two and a half baths so the first thing was to replace all the toilet seats $75.00, we also needed one of the tubs upstairs refinished, a new tub surround, and the floor retiled. The master bathroom only needed the floor retiled; the cost to retile both bathrooms and the tub surround was $700.00. All the trim and doors on the second floor needed painted which was another $600.00. We put new wire shelves in one of the bedrooms ($140.00) but other than that the rest of the upstairs was great condition.

On the outside of the house we spent $500.00 on landscaping remember curb appeal is very important if they don’t like the way it looks when they pull up they may not even come inside. The deck outback needed repainted badly ($150.00). Squirrels had damaged one of the gutters and fascia board on the back of the house so it needed replaced badly, we spent $220.00 for that repair as well. In the end everything we fixed or improved on this house either needed repaired or increased the value of the house.

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