Sarah Mills Rehab Deal

Rehab Details

Property City: Brampton
Purchase Price: $340,000
Repair Costs $62,000
Holding Costs: $4,270
Sale Price: $468,000

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Case Study

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

Our Realtor found us this property on the MLS. We were able to purchase the property with a 100% private loan arranged by a broker and we used our own money to fund the renovation.

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

The main renovation occurred in the basement. The entire renovation included stabilizing the footings in the basement to resolve the sloping roof issues, some major plumbing work including installing a spider drainage system and in-ground sump pump, replacing the old clay pipes, redirecting the main service pipe from the upper levels into the ground so that we could make the basement a livable space. As people expect modern homes to have at least 3 bedrooms, we turned what was just a dingy storage space into a cozy bedroom with a walk-in closet, and a livingroom/sitting area. The installation of new, 'to code' stairs to the basement was also necessary. On the main and upper level we repaired the extensive cracks in the walls and ceiling, added new light fixtures, added a closet to the mudroom, a tiled backsplash in the kitchen and installed a brand new main bathroom. Outside required a new roof, eaves and downspouts to safeguard against the basement moisture issue. We also replaced all the exterior doors and lighting and refinished the front porch.

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

We used a Realtor to sell the property and we able to get 99% of the asking price.

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

We learned the hard way to make sure that all water issues are dealt with in your basement before installing the floors. The FB Mastery system works and don't deviate from it. Whenever we did, there were unpleasant consequences. If there are doubts about basement water issues, it is best to do the full job the first time, otherwise both time and money are wasted in delays and corrections. Complete all of the exterior work first so that you can begin to market the property while it is under construction.

Shout Outs & Testimonials

When we first started looking for a property we were looking all over the place which made it really difficult and time wasting but Mastery Coach Radovan Smolej suggested that as new RE investors we should focus on two parameters, proximity to our own home and chose a neighbourhood that people are improving their homes. Of course, those where not his exact words but it helped to provide the focus we needed and within about a week of that coaching call we were able to put in a winning offer on first property. Having pre-knowledge about the neighbourhood allowed us to make an offer on site, which is really important in our area where properties typically sell in less than 7 days and often over asking.

Before & After Photos