Transforming 302 L Street: A Team Effort in Strategic Real Estate Investment
Discovering the Diamond in the Rough
Our journey with 302 L Street in Bedford began in a unique way. Through our targeted Facebook ads, a tenant living in the property reached out to us, hoping to assist the owner in selling the house. This unexpected encounter not only led us to 302 L Street but also to a second property, both offered by the owner for a total of $150,000.
Evaluating Potential and Making the Deal
After careful analysis, our team recognized the potential of 302 L Street. With an After Repair Value (ARV) of $180,000 and a projected rental income of $1,400/month after upgrading to a 3 bedroom, 2 bathroom home, it presented a compelling opportunity. The second property, with its Section 8 tenants, offered stable income with future updating possibilities.
Challenges and Negotiations
The path was not without challenges. Inspections at L Street uncovered significant issues: a deteriorating roof, foundational concerns, electrical problems, mold, and a faulty water heater. The second property, however, was in better condition, requiring minimal immediate updates. With this information, we negotiated the purchase price down to $120,000 for both properties, a figure the owner accepted considering L Street's condition.
Rehabilitation and Overcoming Obstacles
The rehabilitation of L Street was a significant undertaking, costing around $62,000. We encountered an additional hurdle with a tenant unwilling to vacate, leading to an eviction process. Despite these challenges, our team, alongside enthusiastic new construction crews, worked diligently to revitalize the property.
The Rewarding Outcome
302 L Street is ready to hit the market at our anticipated price of $180,000. This venture, with its highs and lows, showcases the impact of strategic teamwork in real estate investment. With an investment of $65,000 for the purchase, approximately $65,000 in rehab, and $12,000 in closing costs, we're set to realize a profit of about $38,000.
