“Bought and Rehabbed a Bank-Owned Property”
Corning, New York
“Hi, my name is Casey and I want to share my experience doing my first
rehab. My husband and I always knew real estate was lucrative, but we had zero
We found a 4 Bed/2.5 Bath two-story colonial in a nice part of town. It was a bank
owned foreclosure. The property was not advertised anywhere (there was a single
photo of a patch of grass from the front yard on a real estate website).
It was scheduled for auction in 30 days so we looked at it.
Overall the house was in good condition but was in bad need of updates. It still had
the original builders paint on the walls from 18 years before!
We found the bank was owed $223k on the mortgage and that’s exactly what we
offered. The comps in the area were all $300k+.
It took the bank longer than we expected to respond. We got the call that our offer
was accepted while in the airport on our way back from vacation.
It was an exhilarating and scary rush of emotion all at once!!
We closed in 30 days (using mostly other people’s money) and with a tip from our mentor saving money on realtor fees and closing costs.
My husband and I wanted the experience of doing a lot of the work ourselves so we made the decision to invest some “sweat equity” into the rehab.
Neither of us had experience with
construction. We both can change
light bulbs and that was about it. Demo
was the easy (and most fun) part, but I
don’t think we will do the work ourselves
on the next flip.
Here is a list of updates we made to the home:
– Took out wall to open up the kitchen with the
– New hardwood flooring throughout first floor
– New landscaping and hardscapes
– Crown Molding
– New lighting (small recessed flood lamps)
– New paint throughout – Pottery Barn like earth tones
– New carpeting in all upstairs bed rooms
– Slate flooring in mud room
– New kitchen cabinets
– New granite counter tops
– New appliances
We saved on the labor costs – other than our time, but we got some great experience
doing the rehab. Our friend helped us with the rehab and we paid him $1,500 cash
and took him out to a steak dinner.
All the major work was completed in 45 days.
Here is the hardwood flooring (“Brazilian Teak”) we put in on the first floor.
Our overall net gain after expenses was $39,880. We liked the house so much and
had so many good bonding experiences during the rehab that my husband decided
to move in and keep it for a while. We were able to immediately get a HELOC at 2.9%
which we rolled into another opportunity.
We would not have taken this leap without having somebody to steer us in the right
Here is the photo of the living room finished.
THANK YOU so much – looking forward to the next one!
Order by Phone: 1-844-240-2399