The Renovation That Yields $615 Monthly Cash Flow

Join Our RentalRookie Community (It's Free)

I'm super excited to share our most recent renovation with all of you.  Like I've stated on other posts, our very first rental property we bought, my husband and I tackled on our own.  We did just about all of the work, besides some plumbing issues and ceramic tile.  While we both love these property projects, now we have a 6 month old daughter which brings a new spin to our projects.  But, guess what.....we were still able to do most of the work while working full time jobs and having a cute little peanut who always is stealing our attention!  That means that you, no matter what you have going on, can also tackle this challenge if you want.

History of the Property

So the history of this particular property.  We bought it in January of 2013 and had tenants move in on January 1st.  We decided when we bought it that it did indeed need some work, but it could be rented without doing nearly anything to it for now.  Frankly, we were busy with work, the holidays, our other property so we said, let's rent it, bank the money and make the necessary changes when these tenants move out.  And that's what we did.  The tenants moved in and we were collecting rent.

The property is a 2 level 2 bedroom 1 bath town home.  We bought it for $75,000 with 20% down and rented it with an annual contract for $850 with nearly no money put into the property after we acquired it.  Therefore, we were cash flowing $465 a month with an ROI of 32.8%.  Pretty great, huh?!

When the tenants moved in we collected our security deposit along with a $400 non refundable pet deposit.  Now when it comes to properties we usually don't allow pets; however, since we knew we were going to be rehabbing this property in the near future we allowed the tenants to have a dog with that non-refundable deposit.

Fast Forward....

15 months later our tenants moved out and the rehab project began.  When we walked in, we were thankful that we collected a pet deposit because the dog did leave its mark.  Looking back, we should have collected a higher pet deposit and will in the future.  But we did our walk thru and took in the property as it was and began the process that I am going to walk you through.

The best part about this renovation was that we collected around $6,000 over the previous 15 months that we were able to reinvest into the property so that the cash wasn't coming out of our normal income and savings.

Check Out the Renovation

2 Comments

  • Great job on the renovation! I have done many for my apartments. new kitchens, floors, replacing sub-floors, tear out walls, etc.

    You will fine you get a slightly higher rent, but more importantly you rent faster, and to a higher quality tenant. It’s hard to quantify a faster rental, but it is there.

  • admin

    Reply Reply July 28, 2014

    Thanks for your kind words! I agree that renting faster to higher quality tenants is worth putting in some work from the landlord’s perspective!

Leave A Response

* Denotes Required Field