Time flies when you’re out having fun! Well, that and when you have ambitious partners who will work aggressively trying to close a property while you’re out of town (thanks so much team!). 😉
The dust has settled (rather quickly), and Rental Property Side Hustle #1 has been fully funded! The team and I received the keys last Thursday night, and we’ve been working expeditiously trying to get the property up to stuff in as short a timeframe as possible.
For the most part, this unit was acquired fully turnkey (rent ready), and only a very minimal amount of elbow grease needed to be put in. Quite simply, all we had to do was change out a few things: all the doorknobs, electrical outlets (install GFCI plugs in the kitchen and bathrooms), some doorstoppers, blinds, smoke detectors, carpet cleaning, mailbox, etc.
The place is just about rent-ready now (after only three days of work)! Ideally, we will have a tenant in place sometime this month and be able to collect a pro-rated portion. My partners and I now need to actively market this unit. Optimistically speaking, we are hoping for $3,000/month in rent. The unit is 3 bedrooms and 1.5 bathrooms, situated in a prime location in the South Bay Area.
$3,000/month in rent might be a stretch, but the unit is in top-notch condition. New construction apartments are easily renting for over $3,800/month… If we can somehow get $3,000/month in rent, this unit will cash flow from Day 1 (without factoring in any funds for PM, maintenance, or vacancy)!
Not too bad when you consider the fact that we only put down 20% and are purchasing in the super EXPENSIVE Bay Area, right? Let’s hope for the best!
Here are the pictures!
When it comes to rehab, I love getting a lot of bang for my buck. This unit was acquired in fantastic condition. It already featured: new countertops, stainless steel appliances, copper piping, etc.
So, basically all the expensive items arrived in great shape. HOA also covers the fence, landscaping, and roof, so no worries there. From an upgrade point-of-view, only a few minor cosmetic items needed to be addressed.
The team and I maximized our dollars by performing cheap (but important and noticeable) upgrades. Daily use items were swapped out: electrical outlets, doorknobs, mailbox, carpet (cleaning), blinds, etc.
Some of these $10 upgrades really go a long ways towards helping us create a more favorable impression. We are hoping that these subtle upgrades will be sufficient to help justify the higher rent. 🙂
Here are pictures after three days of rehab!