Alex And Kathy Schuck Rehab Deal

 

Alex And Kathy Schuck Rehab Deal

North Shore Real Estate Solutions, LLC in Andover, MA
Alex And Kathy Schuck with Alex and Kathy Schuck

This was a rehab of a property that was in tough shape. The house was built in 1907 and had many of its original details, like wine pine flooring, built-ins, etc. but also had a weird addition added on to the back in 1998 that didn't fit the style of the home. The owners lived out of state and they were renting it to a young woman with several young children. There was trash and laundry everywhere - there was even a clothes line hanging up across the front hall! We also discovered that there was no heating ductwork going up to the second floor - just open vents in the floor where the heat could rise from the first floor.

Rehab Details

Property City: Newbury
Property State: MA
Purchase Price: $230,000
Repair Costs $115,473
Holding Costs: $33,372
Sale Price: $425,000

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Case Study

How did you find and structure the financing of this deal?

We found this deal on the MLS. It was a short sale. A lot of "retail" buyers were scared away, we believe, because there was no information on the condition of the septic system and because the house was in such poor shape. We financed the deal using a commercial construction loan through a local bank we work with that was literally 2 miles down the street. They funded 80% of the purchase price and 80% of the rehab cost. We funded the remainding purchase price and construction costs through our business funds and Home Equity Line of Credit (HELOC).


Provide a summary of the repairs and improvements you made to the property.

We touched almost every surface of this house except the windows and roof which were less than 10 years old: - repaired the exterior wood rot and replacing most of the old shingles with new - painted the house and trim - Added a new driveway to the front of the house - Replaced the septic tank - Added new flooring to addition part of the house - Refinished the existing wide pine floors - Added a new kitchen and baths (including a new tub because the renters took the old one!) - Added all new ductwork - Installed TWO furnaces, one in the basement and one in the attic - Updated the electric panel and service to 200 amp - Painted the entire interior - Added new doors - both interior and exterior - Added new light fixtures - Re-configured the master bedroom to include a large walk-in closet


How did you find a buyer for the property if you sold it?

We thought that this house would take a while to sell because it is on a busier street in a small, "sleepy" town. Kathy has her real estate salesperson license with Realty National, MA, so she listed it on the MLS. Before we even got a chance to do an Open House, we had multiple showings and an offer. The offer fell through because the buyers got cold feet. The same day the offer fell through, we called another interested party and got a full price offer!


What are some of the major lessons learned that you would like to share with other students that they can learn from?

Get a home inspection before you buy the property, especially on an older home. We didn't have one and that hurt us when we discovered (after we bought the property) that there was no heat or ductwork going to the second floor. We went $10,000 over budget just on the HVAC budget alone.


Shout Outs & Testimonials

Our new general contractor on this project did a great job and was recomended to us by someone from Grand Coast Capital. So thank you, GCC, for that recommendation!




Before & After Photos