7/17/23  – Reno Update – Week #11 – The property had been cleaned but the guys are still working on the landscaping which includes some trees that had fallen over in the backyard. Everything else has been completed. You’ll find a link to the photos below!

Now would be a good time to send in the overrun amount of $2800 for the water service we did. I’ll give Christie a heads-up to expect it. Link to Photos

7/10/23 – Reno Update – Week #10 – You’ll find the link to the progress photos below. We’re wrapping up some final touches today and will have the property landscaped and cleaned next week so that we can turn it over to Rivertown! Were you guys looking to flip this one or rent it out? Link to Photos

7/3/23 – Reno Update – Week #9 – You’ll find the link to the progress photos below. We have the new flooring installed and it looks great! We needed to install some additional circuits in the kitchen so now that that is done, we’ll be finishing out the kitchen with the installation of the cabinets and countertops. Link to Photos

6/26/23 – Reno Update – Week #8 – You’ll find the link to the progress photos below. We have the water lines and drain moved for the kitchen sink but haven’t finished the kitchen just yet. We have the floor tile installed and will focus on installing the cabinets and countertops along with getting the flooring installed next week. Then we’ll move into wrapping everything up. It’s going to look great! Link to Photos

6/19/23 – Reno Update – Week #7 – You’ll find the link to the progress photos below. We’ve got the tile flooring and tile surround installed in both bathrooms along with the vanity sinks and toilets. It’s looking good so far! We have most of the plumbing completed save for the kitchen. We’ll be moving the water lines and drain so that we can finish out the kitchen next week. Link to Photos

6/12/23 – Reno Update – Week #6 -You’ll find the link to the progress photos below. We’re continuing to work on replacing the water service line and doing some painting and bathroom work on the interior. It’s coming along nicely and looking good! We also have the roof installed just about completed! We’ll continue working on the plumbing next week so we can move our attention to the kitchen. Link to Photos

6/5/23 – Reno Update – Week #5 – As we’ve started getting into the plumbing, we’ve found that the previous owner did a doozy on the plumbing system. My plumber is recommending we run a new water service from the meter to the house because the existing water service line is the wrong size and not feeding the water lines in the house correctly and remove the existing lines they ran under the foundation. The cost to do that will be an additional $2800. Unfortunately, there’s really no way around this and it’s something we need to get done. Apart from that, we have the exterior painted and it turned out really great! Link to Photos

5/29/23 – Reno Update – Week #4 – You’ll find the link to the progress photos below. We’ve done some patchwork on the inside and are replacing damaged wood on the exterior so we can paint the exterior. We’ll be starting the roof over the next few days and finishing the plumbing next week as well. Link to Photos

5/22/23 – Reno Update – Week #3 – MLGW is requiring an engineer to assess the electrical equipment given the power has been off for years. This will likely take some time given they usually only have 2 engineers servicing the entire Memphis area. Since we have passed the electrical inspection on the Code Enforcement side of things, we’re going to go ahead and get started using a generator until the engineer can get to the property. Below is a link to the progress photos. The yard has been cut and we’ve started work on the interior. Link to Photos

5/15/23 – Reno Update – There are no physical changes to the property but we’re working to get the power turned on so that we can hit the interior. We’re still working to get the power turned on and because we need to turn in documentation physically, Rivertown is going to step in and assist as you saw earlier. Ruth was able to get an appointment scheduled for next Tuesday.

5/8/23 – Reno Update – Week #2 – We got some good news in that we passed the electric inspection! Our next step is going to be reaching back out to MLGW to get the power turned on so we’ll be looking to hit the interior full force soon. I’ve sent a link showing the electric green tag. Link to Photos

5/1/23 – Reno Update – Week #1 – I’m sending a link to the progress photos below. There aren’t any obvious changes as we have been working on correcting the electrical wiring in the property. We’ll now be covering the open walls so we can call it in for inspection. We’re aiming to have it all resolved by the end of next week! Link to Photos

4/13/23 – You’ll find the proposed scope of work and budget reflecting it for your review and approval. If approved, I’ll have Loren send you the PMA to sign off on. Part of the reason we had to spend a little extra time on this is because we found that the previous owner was getting power illegally which means that we would need to get the power in you guys’ name and turn it on legally. We will have a few hoops to jump through because of this. MLGW would require us to sign an affidavit, which Christie could help us with, and provide closing documents proving this happened under the previous owner. So we’ll need to work through that.

4/3/23 – You’ll find the proposed scope of work attached. Contingent on your approval, we will start getting the job bid out. Or if you’d like to make any changes, let me know that as well.

3/25/23 – You’ll find the link to the walk thru photos below. The property is a 3/2 and located in a good location. It appears that someone had started working on the property with the intent to flip it given the grade of some of the fixtures. So, we’d need to finish what they started. Unfortunately, it seems like they were still in the beginning phase of the job. To finish the job, we’d have two approaches, finish the job doing a rental rehab which would have you looking at a ballpark estimate of 61-64k (this INCLUDES the fee) or we could finish it with a retail approach which would have you looking at a ballpark estimate of 66-69k (this INCLUDES the fee). Both approaches would have us installing a new roof, finishing painting the interior/exterior, installing new flooring, install all new mechanical, doing some subfloor work, renovating the bathrooms, renovating the kitchen, finishing out the electrical and plumbing, hanging some new drywall, finishing out some framing, install a few new windows, doing some landscaping, and other miscellaneous items. The difference in the estimates would be that to flip it, we’d need to go with higher grade finishes throughout.

Roof: The roof is old and needs to be replaced.

Exterior: The exterior has a lot of soffit and fascia replacement needed. There’s also some framing we need to finish and cover with siding or brick in different locations. The grounds will need to be cleaned and there is a tree in the back that has fallen over that I recommend removing it. That has been accounted for in the ballpark estimate. We’d also be pressure washing, painting, installing a few new windows, and other miscellaneous items.

Interior: The interior was a mess, but it looks like they ran some new water lines in the bathrooms but were working on the plumbing for the kitchen island they were building. The painting looked mostly done so we could match the color they were using and finish it out. Some of the existing flooring is damaged and will need to be demoed to varying degrees and have new subfloor installed so we can install new LVP. There was wood left at the property so we could use that to finish out the framing they were doing and then hanging drywall.

Mechanical: The property will need a new HVAC system and water tank.

Electric: The property is on breakers and the power was on. There were some wires out in a few spots, so we’d need to finish the electrical they were working on.

Gas: The gas meter was not present, so we’d have to go through an inspection to get it released.

Appliances: None

Additional: There was some material at the property that included some door frames, window trim, backerboard, and a few other miscellaneous things. It’s something but not much. We’d need to be sure that what is there would remain.

Pictures: Walkthrough Inspection

Confirmed market value: $160,000 to $175,000

Confirmed market rent: $1,395 to $1,495

Deal Analysis: WORST CASE SCENARIO → ANTICIPATED SCENARIO
Closing Date Scheduled: 3/31/2023
Total Cash Outlay: $148,000