4 Turned 5 Bedroom Single Family House - Fairfield, AL 35064

A 1,700+ SQFT home in rough shape. Listed at 89,900, I came in at 85k I think and ended up closing at 75k after inspection.

Rehab Needed To Meet Section 8 Standards:

- Entire home repainted, including all walls, ceilings, and trim work

- All new flooring installed throughout unit

- Closet built in bedroom 3

- Trash removal from interior and exterior

- Woodwork done throughout unit

- Ceiling work and drywall damage fixed throughout unit

- Update all electrical outlets to fit electrical standards of section 8 inspection, addition of 2prong 3prong outlets where necessary, and

removal/disposal of outlets that are ungrounded as well as GFI outlets

installed in all areas needed

- Installation of smoke detectors and carbon monoxide detectors

necessary throughout home to pass section 8 inspection

- Installation of new light fixtures in home, and removal/disposal or

current fixtures as well as all ceiling fans currently present

- New locks to be installed in all doors

- Home to be thoroughly updated to meet all guidelines necessary to

pass section 8 inspection

- All interior unvented space heaters removed

- Furnace serviced

- Electrical work done throughout unit

Total Bid: 32,000

Rehab Begins (12/11/2023):

Additional Rehab: Once the tenant moved in, we started having a few issues with the bathtub not draining as well as low water pressure. Decided to go ahead and replace the sewer line and water lines as well as re doing the majority of the plumbing in the house. The cost for this was 8,500.

Numbers:

Initial Cost:

Purchase price: 75,000

Rehab cost: 32,000

ADDITIONAL rehab: 8,500

Closing costs: 1,574

Total: 117,074

Monthly Income:

Monthly rent: 1,550 (Tenant has a larger portion of this rent amount)

Property management: -155 (10%)

Property insurance: -119 (1,431 annually)

Property taxes: -44 (529 annually)

Total: 1,232

**Does NOT include debt payments**

Summary: Initial cost: 117,074

Net annual cashflow: 14,784

Annualized cash on cash return: 12%

**Note: the numbers detailed here are missing a few costs such as utilities cost during rehab, property management new tenant leasing fee and appliances for the unit.