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Diary of a Turnkey Rehab

Posted by wpuser on
| 4 Comments

When we decided that we wanted to start selling turnkey investment properties, there were a few motivations.  One, we have been full time real estate investors for almost a decade now, and we know the freedom that owning cash flowing properties has provided us.  We wanted to help other people achieve that freedom.  Two, we were tired of seeing people taken advantage of.  We saw people with little knowledge being sold a property that they had no business buying.  Terrible neighborhood and a terrible turnkey rehab.  They were sold simply on the numbers.  We wanted to right that wrong. 

When we first started buying rental properties, our thought was to do a minimal rehab because the numbers looked so much better.  We would hold on to a furnace even if we knew it had only few years left.  The rationale was always try to stretch a few more years out of everything.  Year after year, our returns were never as high as we expected them.  It was because our repair and maintenance numbers were significantly higher than we expected them to be.  We were spending our “profit” in fixing things that we passed on fixing earlier in the project.  Not only did this create more work for our staff, it was also more costly to have to deal with the emergencies that we could have prevented. 

We realized it was time for a change.  We moved to the other end of the spectrum.  Nowadays, we save very little.  We want to go into a project and fix everything right at the start.  This reduces headaches down the road and unwanted maintenance calls. 

My words can carry only so much weight.  That is why; we wanted to document some of our ongoing projects to showcase the work that we do.  Our turnkey rehab is not just paint and carpet. 

We live by the Henry Ford quote, “Quality means doing it right when no one is looking.” 

Turnkey Rehab Property: Drexel

Front:

front turnkey rehab

This is a single family home we picked up a few weeks ago. The property has 3 bedrooms and 1 bath in a neighborhood that has lots of potential.  It is walking distance from the University of Chicago.  Unfortunately, it is a mess.  Nobody has lived here for a number of years.  The property will need a complete overhaul to get it back into livable condition. 

The property has a lot going for it.  It has 10 ft ceilings throughout, hardwood floors and some old charm. 

Common Areas : Living room/Dining Room

Living room          Dining room

The walls are in rough shape throughout the house.  We are going to demo all of the plaster walls throughout the house and hand new drywall.  This will give us an opportunity to see any issues behind the walls.  

The hardwood floors are in good shape and we will refinish them.

The fireplace is incredible.  We are definitely going to save this.

We will install some can lights and possibly do an accent to the ceiling to really make it stand out.

Kitchen:

Kitchen 1         Kitchen 2

This is what is left of the kitchen. 

The demo has been done for us.  We just have to put it back together.

Bathroom:

Bathroom

Everything is coming out.  We will be starting over in here.  New tub, toilet, vanity, tile surround.  Everything needs to be replaced.

Bedrooms:

Bedroom turnkey rehab          Bedroom 1

The bedrooms will have the same scope of work as the living and dining room.  New drywall, new doors, new trim, refinish hardwood.  This will sparkle when done.

We are going to address everything during this turnkey rehab.  When we get done, it will be a brand new house.  If you have any comments or questions, feel free to post them at the bottom or email us. I’m looking forward to showing you the progress next week!

Week 1 of Turn key Rehab

Week 2 of Turn key Rehab

Week 3 of Turn key Rehab

Week 4 of Turn key Rehab

Week 5 of Turn key Rehab

Week 6 of Turn key Rehab

Final Week of Turn key Rehab

 

 

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4 thoughts on “Diary of a Turnkey Rehab

  • James Bischoff
    on

    Hi do you have some idea of rehab cost? Can you send me a address, sincerely, Jim

    • Hi Jim, The property is located in East Woodlawn just south of the University of Chicago. Our rehab costs vary greatly on projects depending on the condition that we find them. Rehabs can cost anywhere from $25-$45 per sq.ft. not including any soft costs.

  • john collins
    on

    Hi Mark ,nice synopsis on your investment reasoning. Food for thought .would you expect to see appreciation in this area say in. 10 year time frame ? Not trying to make you into a gypsy ha ha .
    Being close to a university is always good .

    • Thanks John. We are definitely expecting appreciation in this area. We select the neighborhoods of our investment properties diligently and by calculating the future prospects they can offer. Our due diligence serves as our gypsy 🙂

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