Montebello Case Study
This one came from the MLS. We typically throw out 10-20 offers a week and we lucked out on this one! The bank actually offered us $5000 in seller credit if we could close it within 30 days. You bet we did! We got this one for $110,000
Project Challenges and Obstacles
The biggest challenge with this one was how to add a second full bathroom to the existing floor plan. The current plan had a single bathroom, with the toilet and shower separated from the double vanity. We decided to split the bathroom in two and create two full bathrooms from the original one. We opened the wall in the master bedroom, allowing access the the newly created master bath. Now we had two full bathrooms to service the bedrooms. A big improvement to this floor plan. The other major challenge we faced was the unexpected necessity to replace the heat pump an AC unit. They looked fine at our inspection but ultimately needed to be replaced.
We purchased this one for $110,000. Our rehab budget was $57,000. Purchase, carrying and sales costs will amount to around $46,000. We currently have it listed for $255,000. Our potential profit is $42,000.
There are usually creative ways to get around most layout problems. Sometimes thinking outside the box is necessary to come up with a solution. It’s important to address “functional obsolescence” in your project before putting it on the market. In this case, a three bedroom house with only one bathroom would have faired poorly in our market.