My team and I completed a rehabilitation project for one of our rental units this weekend.� This project was cosmetic with the exception of the HVAC Unit.� We think this is a non-issue (no gas), but we will know...

My team and I completed a rehabilitation project for one of our rental units this weekend.� This project was cosmetic with the exception of the HVAC Unit.� We think this is a non-issue (no gas), but we will know later in the week.� This is the first post of rental rehab with pictures and costs.� If you want to know what we paid for the building in detail, check out Buying Real Estate for Passive Income.� With that being said, let�s dive in!

The Story

The original tenant was inherited from the previous owner.� From what we gather, the tenant had been living there for a number of years and didn�t have any drama.� After purchasing the place, we noticed the tenant was late on rent quite often.� The first time wasn�t their fault.� The Veterans Affairs people messed up the tenants check, sent us a letter admitting fault, and asked for an extension on the tenants� behalf.� We did and all was well.

After that, unfortunately, the tenant could not keep up with the rent payments.� We started the eviction process and the rest is history.� What we ended up finding out was the previous owner sold the tenant a car.� Between the new car note along with the rent payments, the tenant could barely manage them together.� I blame the previous owner for this.� They knew better than to sell his tenant something they couldn�t afford.� But anyway�whatever.

Rehabilitation Plan

Our plan was pretty simple.� Evaluate, estimate, and execute.� We had the security deposit of the previous renter of $880�and we wanted to spend no more than $5880 for this rehab.� The goal here wasn�t to completely gut the place like we had to do with 4 of our other units because this one was in much better shape.� It�s just the unit had not been updated or cleaned properly in a few years other than a newer toilet and mirror.

The Unit

Our walkthrough wasn�t exhilarating.� I think the most interesting part was how dirty the place was.� The carpet, windows, doors, ceilings, and rooms were filthy.� The tenant had 2 dogs so I�m sure that didn�t help much.� The bathroom was clean as well as the kitchen sink.

Overall, it wasn�t bad.� The work was more cosmetic and not like we had to fix structure issues like floor joists (uneven floors), plumbing, or electrical.� This was a big relief as we were just coming off 2 major rehabs that were complicated on almost every level.

Rehab. Pictures

Here are some of the before/after pictures of the unit.� You will find details and costs after.� I didn�t have pictures for EVERYTHING but, these will give you a good glimpse into what we were able to accomplish.

Kitchen

Living Room

Bedrooms:

�

Cost Details

Flooring � $494.04 Light Fixtures (ceiling fans) � $139.94 Recessed Lights (living room & kitchen) � $460 Blinds � $356.02 Paint � $314.84 Misc � $307.19� molding knobs, defusers, etc. Kitchen Counter Tops � $422.66 Cabinets � $1,364.88 Outside Staircase Rebuild � (included in labor) Labor (for all � even old kitchen removal) � $2835

As you can see from these numbers, we went over budget around $814.57 however, that was my fault.� I added recessed lights, new blinds, etc.� Overall it wasn�t bad.

Timeline & Renting

The project took a little over a month, but we spent a lot of time waiting on the kitchen to be delivered in parts.� We lost about 2 months worth of rent however, we had A LOT of applications from our Cozy.co portal and people contacting us about the rental during the rehab.� The unit was rented before it was complete.� That�s a good thing!

Conclusion

This rehab went really well and wasn�t as complicated like others we had been a part of.� We were on budget (minus my additions) and as you can see from the pictures, there is a noticeable difference in the living space.� Next, we will clean up the outside and I will make sure to post that as well.

FYI, BiggerPockets.com has an excellent rehab calculator if anyone is interested.� We didn�t use it for this one, but we plan on using it for our next.� The rehab was managed by BTDC Properties LLC.� Check �em out!

Cheers!

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