Miranda and Fab had a very specific goal: retire at 55. Great plan – in theory – but that retirement money wasn’t going to just fall into their lap without some hard work and sweat equity.
Choosing a smart suburb with high rental demand was Miranda & Fab’s first smart choice. Having a plan for multiple properties, quickly, was their second. But that plan involved taking a risk on an auction property, which meant a low purchase price, but a lot of unknowns about the condition the property was in. We knew the house needed a lot of work, but nothing could really prepare us for how much work (and money) it actually required.
Structural problems, water issues, and some of the worst ice damming we’ve ever seen put these rookie investors over budget and behind schedule. But Fab’s plumbing skills and a few lucky breaks kept Miranda and Fab out of the red.
Design Theme: Century in the City
Purchase Price: $235,000
Realtor Appraisal: $320,000
Increased Property Value: $85,000
Chosen Renovation Option: $50,000 – Reconfigure layout in order to create an extra bedroom includes new floors and coffered ceiling. Estimated rental income $1500.
Alternate Renovation Option: $40,000 – A light renovation with new floors, updated bathroom, kitchen refresh with extra storage and built in dining room. Estimated rental income $1300.
Estimated Monthly Rental Income: $1,600