The plan is to do a full gut rehab on a three-story home in the up-and-coming neighborhood of East Kensington.
Purchase Price: $170,000
Soft Costs: $15,000 (architects and hard money costs)
Closing costs: $10,000
Expected Renovation Bill: $125,000
Expected Price to Sell: $450,000
Total Expected Profit: $130,000
What is the actual profit? Read on to find out…
The plan is to do a full gut rehab on a three-story home in the up-and-coming neighborhood of East Kensington. This 1,400 square foot, 4 bed, 2.5 bath home had great bones and a large yard (1,200+ sq. ft. lot), making it a great fit for renovation. The whole house was demoed to start fresh with new systems, walls, and windows.
Contractor issues were a major problem in the beginning of this renovation. The general contractor, while present and effective initially, stopped showing up to the site — leaving either unsupervised and unqualified subcontractors to do shoddy work, leading to a stagnated worksite. With money for the job in hand, the contractor disappeared from the transaction creating lots of frustrations with timelines and budgets. At this point, legal actions are underway to try to recoup the losses on the expected project stats. Stay tuned for updates to a resolution on this matter.
In the meantime, the contractor has been replaced. The new contractor noted some unacceptable work that the contractor before had completed, leading to more delays for redone work.
After finding a new contractor, work resumed and the house is completed. Here are some pictures of the nearly-completed house:
Sale Price: $450,000 on Jul 7, 2020.
See what our property has to offer.