How to Turn a $67,000 Remodel Project Into a Cash-Flowing Rental House

ByMike Nguyen

Episode #247 – Learn how one investor Larry Towner found and fixed up a $67,000 remodel project that now rents for $1,000 per month and produces excellent cash flow. If you’ve ever considered buying major remodels so that you could make more money on your investment deals, this is the perfect episode for you.

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Purchase & Remodel Costs For Larry’s Deal:

South GA Home Acquisition and Reno Costs

Purchase 24,000
Closing costs 1,000
Painting interior and exterior 6,700
Siding 5,200
Lumber and Misc supplies 4,000
Roof 3,000
Flooring 2,600
Plumbing 2,500
HVAC 2,400
Electrical 2,000
Bathroom 2,000
Appliances 1,600
Windows 1,200
Doors 800
Kitchen 800
Fans/Blinds/Smoke Detector 800
Dumpster 400
Total  61,000

NOTE: Larry also contributed a large amount of labor to remodel the property, estimated in value at about $30,000. So, if he had paid a 3rd party to do all of the work he’d have about $91,000 total cost.  But with that contribution of sweat equity, his cost is $61,000.

Remodel Details for Larry Deal:

  • Hired the painting, roof, siding, and some other help in these figures.  New appliances, supply side plumbing, hot water heater, re-wired the  whole house (house had 200 amp service), full bath remodel, we saved some drywall and the kitchen cabinets.
  • Some supplies were repurposed from Handyman jobs (recycled, garage door, toilet, plywood, lumber), shopped for returns on the appliances ($350 Each for the washer and dryer, $200 for dishwasher, full warranty out of the box at Lowes).
  • I estimate that my labor would be valued at around $30,000.  Put this property on the market (basically a brand new home) on December 26th, rented and occupied by January 1 for $1000 per month.

Pictures for Larry’s Deal:

           

 

           

 

         

 

          

 

         

     

 

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