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Real Estate Rental Property #2 Update (April 14, 2013)

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Here is an update on the progress of the renovation. The rehab is actually finished at this point, but I haven’t yet had time to snap photos. Included are the pics from about two weeks ago.

In other good news, I’ve also secured a tenant. The rent will be $2150/month starting on May 01. This is a huge relief for me, as the property has actually been sitting vacant for two months. Believe me, it isn’t much fun to have to pay rent + HOA on a property that is SUPPOSED to be making me money.

Total cost of the renovation is about $20,000. This includes the cost to remove and install brand new dual-pane windows throughout the house, which wasn’t included in the original quote. So, basically everything was upgraded (except the floors).

Enjoy!

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{ 10 comments… add one }
  • JC @ Passive Income PursuitNo Gravatar April 16, 2013, 7:26 am

    The counters look great. And congrats on finding a tenant. How much positive cash flow should you get from this now that you have a tenant/rent set? Hopefully you can start building that DG portfolio back up once the rental gets going again.

    • FI FighterNo Gravatar May 11, 2013, 11:45 am

      JC,

      Thanks! I’m seeing around $400/month in positive cash flow. This estimate isn’t the most conservative since I’m leaving out vacancy and repairs. Honestly, when it comes to total returns, I didn’t get the best deal. It’s very difficult to do so in Northern California, but I did get in at a good price relative to nearby comps. The property has appreciated by about $100k since I put in the offer last Fall… but yes, appreciation is never certain and more speculation than anything. It’s still encouraging though.

      Take care!

  • Brick By Brick Investing | MarvinNo Gravatar April 16, 2013, 9:00 pm

    Nice work! Keep the pictures coming.

    • FI FighterNo Gravatar May 11, 2013, 11:45 am

      Marvin,

      Thanks! I’ll update the finished rehab shortly.

      Cheers!

  • MartinNo Gravatar April 17, 2013, 7:21 pm

    Man, nice work and I bet a lot of work. That’s why I do not want to deal with the property as you do. I am lazy, thus I prefer stocks, they do not need any manual work or dealing with tenants.

    • FI FighterNo Gravatar May 11, 2013, 11:47 am

      Martin,

      Yeah, properties are definitely more work than stocks. I like, however, the whole idea of having someone else pay for my mortgage and still give me extra cash flow each month. Interest rates are low right now, so I wanted to take advantage as well. Leverage can be a very powerful investment tool. Stocks are great too, of course.

      Cheers!

  • The First Million is the HardestNo Gravatar April 22, 2013, 5:15 pm

    Owning a rental property always seems like such a good idea to me, then I realize…I’m far to lazy to do all the work needed to renovate and maintain one.

    Great work, I hope the tenant is a good one that will care for all that work you put in!

    • FI FighterNo Gravatar May 11, 2013, 11:47 am

      First Million,

      Thanks! The tenant is great and wants to stay long-term. Hoping for the best.

      Take care!

  • My Money DesignNo Gravatar April 28, 2013, 1:21 pm

    You can thank Twitter – it recommended that I check out your blog.

    Wow! $2150/month is a pretty awesome amount to bring in. Have you been working on the renovations by yourself? $20K is a lot, but I can see how if you were working on this yourself you could stretch the dollar and really make it look nice inside.

    • FI FighterNo Gravatar May 11, 2013, 11:49 am

      MMD,

      I actually hired a contractor to do the work since I’ve been so busy with work. Yeah, $20k was a lot, but I did win the property at a good price. I’m hopeful things will work out in the long-run.

      Cheers!

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