1,700+ sqft 3 Bedroom Turned 5 Bedroom - Birmingham, AL 35206

A funny looking one for sure. This was a 3 ish bedroom 1 and 1/4 bath property that I was able to snag up for 48,550. This one supposedly needed a full rewire, HVAC, interior turn, roof and siding.

Video walk around before rehab:

Walk through November 2024 with contractor interior.

Water heater and wiring gone! Much cheaper than what I thought we had to do.

After walking it with my contractor in December 2024, we decided to turn it into a 5 bedroom 2 full bath. We built two additional bedrooms, one downstairs and one upstairs. As well as adding a tub/shower combo to the 1/4 bath downstairs. For these bigger 5 bed houses I believe it's crucial to have 2 full baths to get it leased quickly and have tenants stay as typically it's larger families living in these houses.

Contractor Bid:

lvp upstairs $4800, I think we can clean up existing floors downstairs, it's not real hardwood.  If we can't save floors lvp downstairs $4200.  The kitchen linoleum looks decent. 

Roof $7k

New HVAC unit w/cage $7k

Flooring $9k

Paint interior $3900

Wire house? That is hard to ballpark $10k - ended up just having to rewire few wires to break box not entire house - water heater and some wires were ripped out and stolen from the crawlspace.

Toilets/vanity in bathrooms $1,500

Build out two bedrooms $4k

Replace 3 sides $6,500

move breaker box out of bathroom $500

Convert 1/4 bath to full Tub/Shower combo $2,500

move laundry room wiring and add new plumbing to shed $950

Total Bid: $40,900

Walk through video after 1/2 of rehab:

About 1/2 way, walls/rooms built, bathtub in roughly downstairs, all walls repainted, roof done, facia boards and soffits, siding.

Walk through video after 90% of rehab: 

About 90% done, LVP throughout upstairs, bathroom done upstairs and downstairs, just a closet to be built in additional bedroom downstairs then ready to list.

Numbers for this one:

Purchase price: 48,550

Rehab cost: 40,900

Total cost: 89,450

Expected ARV: 150,000-160,000 Last 5bdrm appraisal came back at 162k.

Expected rent: 1,450-1,500 Last 5bdrm I did we got 1550 in 100% sec8 covered rent, but that's high...

Actual rent: 1,398 A bit lower then expected, but found the tenant very quickly and it's 100% covered by the HUD with the tenants portion being 0.

Cost: ~90,000

Rent: 1,398 ARV: 155,000

Personal notes on this one:

Absolute steal. Built a lot of equity by adding 2 extra bedrooms and converting the downstairs 1/4 bath to a full tub/shower combo bath. I believed it'd get leased much quicker with 2 full baths, and it did compared to other units!

With the total cost being around 90,000 - and a after rehab value of 155,000 - and guaranteed rent of 1,400, I couldn't be happier with this one! Probably one of the best cash on cash returns I've done on a property so far.