We will be starting a home rehab in Prairie Village in November. We will be blogging the rehab that officially started this week with the trash out of the home and the cutting down of trees.
We will bring to you:
- Before and after photos and video
- Analysis of why repairs are made
- Analysis of fixtures and finishes
- The finished product
- Live pics and videos from an actual rehab
Before The Rehab Photos
Below you can thumb through the photos and notes we made when Kim worked to come up with the value of the home. Our plan is a basically a total gut and full home rehab.
The Back Story on this Rehab House
One of our friends works at a local bank and her job is work with the borrowers who are behind. She works hard to find ways for the home owner to keep their home if at all possible, offering work outs, short sales and more. After exhausting all options over a 2 year period, she finally had to foreclose on this home. It became a bank owned home. All during this process she kept telling us about how great a house it was and was trying to presell it so we would buy it.
The house was in Prairie Village, and once it was finally a “Bank Owned Home”, we went to take look. As Kim lists bank owned properties and we buy them too, she wanted our honest opinion. What would the house sell for as is. What it might sell for if they fixed it up and what would we pay for it if we were to make a cash offer, closing quickly and they not have to pay any real estate commissions.
Great . . . we went to look and boy, as you can see from the photos it was a real STINKER . . . more on this coming
Our banker friend met me at the house. She got to see and SMELL the house first hand.
Let’s just stop here a minute to say, that in 10 years of rehabbing houses we have never had one smell this bad and the only houses we have smelled that were worse . . . well one had a dead deer in the back yard and one had a dead dog in the basement. There are just no words to describe how bad this house smelled and you could smell it from the street . . . THREE BLOCKS AWAY!!
The Banker got to see, feel, and taste the smell of the house, and she was much more inclined to consider our offer.
Now Kim is a Realtor with extensive experience in BPO’s and she put together a BPO (that’s Broker Price Opinion) with photos and a repair list. Her assessment was that it would probably sell “as-is” with no major repairs for about $115,000 with all the trash removed (soaked in dog urine), all the carpet and pad removed (also soaked in dog urine), and the door needed to be secured (a 2 year old could have kicked this one in).
My Offer On this Gut Job Rehab House
We made an offer of $80,000, closing in a week, no further inspections.
The banker friend had another Realtor who has also provided a BPO around $125,000, Kim’s BPO said $115,000. If you factor in about $1,000 for trash out and clean up, $6,900 in Realtor fees, holding costs for a minimum of another 2 months, and the what ifs that could come up in inspection, the bank liked our offer – a lot.
They countered at $82,000, and we sent them a contract.
The Rough Estimate of Rehab Needed
So what was the rough estimate of rehab needed on this home?
Between $80,000 and $90,000 including (More if we found more issues that we could see at first)
- Reinstallation of Foundation repairs (beams holding up the walls)
- Grading and Drainage around outside of home
- Removal of a lot of Trees
- Replacement of the Roof and Gutters
- Replacement of all Windows
- Replacement of all Heating & Air
- Replacement and Upgrade of Kitchen (Upstairs toilet dripping in the kitchen sink)
- Replacement and Upgrade of both Baths
- All new Exterior Doors & Garage Door
- New Exterior Siding
- Rebuilding of One Exterior Wall
- New Subfloors (the floors under the floors)
- Replacement of Plumbing Lines with Pex
- Removal of Wallpaper & SMELL (did we mention it stinks)
- New Tile in Kitchen & Bath
- New Carpet in Family Room & 2nd Floor
- The list goes on and on
Click for rough estimates of bid:
These were numbers off the top of our head with no bids, no measuring. Basically an estimated guess.
The time frame for this home renovation should be about 5 to 6 weeks with good weather, although the schedule will be impacted by two National Holidays with Thanksgiving and Christmas. Our goal is to be done and have it listed the first week in January.
Be sure to check back to see our progress!