Gwen Smith Rehab Deal

Rehab Details

Property City: Baltimore
Purchase Price: $20,000
Repair Costs $28,358
Holding Costs: $2,339
Sale Price: $111,500

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Case Study

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

From the MLS, I made three offers to the seller and he accepted one. This was financed through a hard money loan.

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

Total gut, removed all paneling, installed new central heating and air with duct-work, added a new half bath, renovated second bath, totally new kitchen and appliances, finished basement, added rear deck, demo'd and added a new front porch; remove metal stair railing and installed oak; trimmed and cut rear yard; removed overgrown tree in front and landscaped front with new sod and plants; all new fixtures, doors and plumbing throughout; updated electrical throughout the entire house.

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

Listed on the MLS; had multiple offers; under contract in around two weeks.

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

Use your six critical documents!!! It will save you from a lot of trouble. Also, insist on getting back your subcontractor contact sheet so you can follow up with various third parties to ensure that the contractor has paid them and to avoid a lien being placed on your property. Ask the contractor to submit proof that he has paid the sub-contractor by him providing a lien waiver from his subs.

Before & After Photos