In 2008 or so we met a new neighbor at our Lake Condo who was the person in charge of foreclosures and keeping failing loans going for as long as possible. For most or 2009 she was getting to know us and we were getting to know her and she kept mentioning one house that she was going to have to foreclose on eventually that was here locally in Kansas. She had driven by the house in Prairie Village and did not think it would be in too bad condition.
Then along comes 2010 and she finally completes the foreclosure and the 3 month right of redemption was over and the former homeowners had moved out. She had an area Realtor who had taken some photos for her and who was going to list the house and sell it, however before she went that far she wanted to let us look at it and make an offer. Kim and Don went to look at the house and took a ton of photos . . . see below . Kim also completed a Broker Price Opinion.
A Broker Price Opinion is basically a real estate agents opinion of what the home might be worth fixed up and if it were sold as is. Kim’s values for the as is price were roughly between $100,000 and $115,000. But to get that price they would need to completely trash the home out which would take a couple of weeks, pay their Realtor 6% or $6,000, and also hope it was not vandalized or burned down or what ever in the next 2 or 3 months it would take for them to list it and sell it through a Realtor. At the same time, Don offered $80,000 for the home.
We also invited her to take a look and a smell of the house. Based on the fact that the smell that came from the house hit you the minute you got out of the car and followed you home after walking through it, our friend recommended to the committee at her bank that they highly consider our offer. The counter offered us at $82,000 and we closed in the time it took for the title company to complete the title and closing documents.
See the before photos of this house
- Click the Link Here
- Scroll through the photos to see pics and read the captions
- See all the issues with this house.
This was an extensive rehab and we have blog posts and videos that chronicle most of the renovation:
- Watch our PV Rehab
- PV Delays
- Tree Issues
- Siding Issues
- Roof Inspection
- Patio Cracks
- Interior Room Addition
- The Garage
- Living Room Ideas
- Kitchen Issues
- Assessing the 1st Floor Bedrooms
- Interior Doors
- What the Basement Needed
- Bathroom Assessments
- Electrical Issues
- Foundation Concerns
- Furnace & Hot Water Heater
- Hardwood Floors
- Assessing the Upstairs Bath
- Looking at the Master Bedroom
- Boy do we need a roof
- What do we do with pink siding?
- Bids on the Hardwood Floors
- Week #1 Chimney and Trees
- Week #1: Roof & Demo
- Week #1: Rebuilds
- Week #2
- Week #3: Written Summary
- Week #3 – Part 1
- Week #3 – Part 2 Room Addition
- Week #3 – Part 3 Bathroom Framing
- Week #4
- Week #5 – Christmas Week
- Week #6 – New Years Week
Be sure to see individual photos of the home during renovation by clicking here.
See the completed product by clicking here.
So what did the numbers look like?
Purchase for $82,000 through a local bank contact.
Sold for $227,000
- Paid $ 5500 of buyers closing costs
- Paid $13,620 in Real Estate Commisison
- Paid $92,000 in Renovations Approximately
- Paid $3,000 in Holding Costs Approximately
- Paid $1,000 in Settlement Fees Approximately
- Owned for 200 days
- Profit $30,000 Approximately
- Note exact figures are in a computer that has long since retired and we are working from memory on these numbers
This home was in need of a complete and total rehab including foundation repairs, rebuilding of walls, windows, siding, roof, concrete patio, new floors and did we mention it smelled so bad you could not spent to long in the house.