Complete Rehab Walk Through At Dayton Property | REI | EP. 60

Hi, guys. Welcome back to another episode on Real Talk. Today. I am here with Mariah. She is our rehab assistant and field secretary. And we're going to be walking through a property here in Dean, and we're gonna be showing you guys a little bit of what Bulldog Renovations does and why we do it for our turnkey investors. And that way you guys can also see kind of what finished product looks like. This one is a little different. I don't know if I said it already. It's located in Dayton, Ohio. But this one is in a historic area, so there are some things that are a little different. And Mariah will be explaining a little bit of that. So we're gonna go ahead and get started with what are some general things that you guys did in the property as a whole.

So in the property as a whole, we had to rewire most of the house. It was on knob and tube wiring, which is old and not very safe. Like, it doesn't meet safety standards. And then we did the plumbing for the kitchen and the bathroom upstairs. And we installed a new H vac system, so a new heat pump and furnace with an air conditioning unit outside. And then for the most part, we just did on the inside, some cosmetic work. So we patched drywall, put up new drywall, and then painted, and then we sanded, stained, and finished the floors.

These floors are beautiful. I put. I love them.

They're amazing. Oh, yeah. I love the nice hardwood floor. It just makes everything look so crisp, so clean. But it still has that nice, classic touch to it. Yes. A lot of the woodwork that you see like around the house is original work. The only thing that's not original would be that handrail, which we'll show you in a minute. But they did pretty good with keeping everything the way it's supposed to be. Like the built in curio cabinets. Beautiful. Yes.

And that goes to say, you know, like I said, it's a historic home, so you want to try to keep some of that historic home or historic features in the home and keep that charm and aesthetic in it. And it's like we've both said, and we'll probably continue to say throughout this episode, it's just beautiful.

Yes, yes.

All right, so now we're going to go kind of room by room. We'll start in this one just because we're already here. So this is kind of like a living area of dead, if you will. I don't know. So what exactly did we do in these two areas?

So in these two areas, we closed off the fireplace because the chip's not usable. So we just closed off to keep the tenants safe on. And then we put in new windows up there. And I think we replaced a lot of the glass, even paints around because a lot of glass is broken out. So. And then we just redid. We painted the walls, did some drywall touch ups. And I think this room is pretty nice from what I could tell from the original pictures. Yes. So that's most of what we did. We installed new lighting, the sconce and feeling light and nature that worked there. Although I think this floor is original, so I don't think we must do this one.

Bess was going to ask, did you hear anything on why we didn't replace this flooring?

Well, I mean, you can tell that it already looks really nice and it didn't get scratched up during the remodeling. So we just kept this floor as it is. And then we just ended up sanding and restaining the dining room to match this one.

Okay, nice. And I think, and you can correct me if I'm wrong, usually when we find floors like these that are not these durable, nice solid wood floors, we try to keep them in there.

Correct. Yeah. Not only does it save on cost, but it also has a nice aesthetic. Yes, absolutely.

And it's durable. You know, you won't have. Shouldn't have to worry about, you know, replacing it or anything like you would if you had carpet or things like that, which comes in handy when you are a real estate investor and usually makes your terms less expensive. Recording. Okay, so now we are going into the dining area. You kind of touched on this a little bit. What all can you kind of explain happened in here?

So in here, we did a lot more, like, drywall work. We had to patch a lot more holes. We got to do some work on the ceiling, the end. So we patched the drywall and painted and like I said, a lot of woodwork is still original and the floors are still original. We just sanded and refinished them to make them look nicer.

Yes. Now, did we. What, aside from the floors, was anything kept in here that we didn't change out? And do you know why we didn't change them out?

So, like, the door frames, we think, add a lot to this house. So you'll see, like, these nice dark wood frames throughout the house. And they just add a lot of character to the doorways because you have a nice arch and it just really adds. And the windows are also original. We typically add in these Blinds just keep give the future tenants an option to shatter the light as they desire to. That way they don't have to like hang blankets and stuff like that to block out light. It's just a nice little addition that we think to put in for our tenants.

Now, did we run any. Run into any issues with the windows due to this being in a historic area?

No, we didn't. A few of them we had to change the locks on because the locks are broken. But we didn't have to have any. We didn't have any violations or any issues come up with replacing windows. And I think most of them, if we didn't just outright replace, we at least changed the glass out. So we tried to keep the original frame, but the frame is still good and we'll just replace the pane of glass just to keep with the character.

Perfect. Do you want to go ahead and go into the kitchen?

Sure. Now, the kitchen has been updated a lot more, but I am really happy that we kept the original cabinets because it has this really sweet, like oak tree design engraved in the doors. And it just really adds a lot to the character in the kitchen. We had to do a lot more work. As you see, we installed LVP for the flooring and we did paint the cabinets and install the new countertops with this nice modern glass and stone back slash. And I think it just looks really nice. It gives it a nice updated feel to a really classic house. So that would be the kitchen.

Now why did we. Why do we do the lvp and what is lvp?

So LVP is luxury vinyl plank. It's a vinyl flooring, so it's a lot more durable. And we have noticed that there aren't as many issues with it as there would be with like a linoleum floor or if we did install like a hardwood, because it's a kitchen and you tend to spill a lot in a kitchen that can damage some floors. So the LVP is a lot more durable, especially because there's like an entrance from outside into the kitchen. So it's easy to clean and just to keep low maintenance.

And then again, it's results easier in turns as well as it should be more cost efficient when you are turning. As she said, the LVP is a lot more durable than other options that you would have.

So this is the laundry room and you have like a little storage cubby back here where you can put some shelves, washer, dryer, hookups are in here. This is not part of the original house this was added on by a previous owner. As you can see, this is technically the exterior wall of the house. And you can see it on this side as well. This is the exterior wall of the house. So this entire, we call it a bump out, was added by a previous owner. And this area had a lot of problems when we bought it because the roof was leaking. So any drywall that had been up here, any wood that had been in here was just completely r. So we had to rebuild this entire room from. From the ground.

Oh, no. But it's all good. Now, did you run into any issues with the historic district on that at all?

No, because it was pre existing. Okay. Before we bought it. So they did not give us too much of a headache for that.

Perfect.

Yeah.

All right. I think we are going to go head upstairs now. So let's go there. So you, in the beginning of the video or podcast, you briefly talked about the staircase, which is a beautiful staircase and landing. So now what was original here and what was not, if any.

Okay, so this is all original. Like all of this carved mold wood is all original. The stairs themselves are original. We didn't paint them just to keep everything uniform. The only thing that we added was this guardrail and they did a pretty good job of trying to help it blend in with the rest of the house. So this was added for safety purposes. We didn't want somebody to just, you know, walk off the end or something like that. So yes, we added this to this. It is all original woodwork.

Perfect. This window right here is beautiful.

Oh, yeah. It looks like a nice little place to take a seat if you don't want to continue going all the way up the stairs.

Take a little rest break.

Yeah. And you have a nice. It's just nice. It's nice light to add in. You can put some plants up here. Oh, yes. Just make it real lively.

Now, did we all this brown, did we paint or stain any of this? Or was that already like this when we acquired the property? And trying to just, like I said, keep that, you know, aesthetic.

So we just painted the stairs themselves, but all of this brown, the stained wood was. Is all original to the house.

Perfect. So now we are upstairs and this is one of the bedrooms. What can you tell me about this one?

So in the bedrooms upstairs, we did a lot of work with mostly the drywall. Again, we had to do a lot of patching. I mean, there weren't a lot of holes, but we still had to patch the holes, scrape the old paint and repaint and in some cases, we had to do the same to the ceiling. And the part that I really love about these upstairs bedrooms are, first off these floors. I think they just are so interesting. The thinner hardwood. These are still the original floors. We just sanded them and stained polyurethane. And then these little bay windows are just so sweet. You have just this little white area right here with the original windows and window panes. And they do work. So you can get some nice light in. You can get some nice air in. And I just think it's really a nice little area. And that's how it is. In both of the front bedrooms in this property. You have this nice little bay window area where you can put, like, a little princess bed or, like, build a nice little train set. And so in this closet, this, I believe, used to be, like a half bathroom.

Oh, interesting.

Really cool window. Like, just in your closet. There was some old piping in here that we sealed off and covered up with some drywall, but now it's a nice little closet. Some of the door handles are original.

Oh, very nice.

And then some of them are just classy. So like, just very classy doorknobs.

And we don't do locking doorknobs. Correct. When we replace them.

Correct. That way you can't get locked out of the room. And then you also can't get locked in a room because that can be a fire hazard too. You know, you don't want to get locked in a room where you get. You can't get out, or you don't want your kids to lock you out of their bedroom. We don't put locking knobs on just for safety purposes and for consideration to all of our tenants.

Perfect. Okay. And in here, looks like we have that LVP again.

Yes.

What else did we have going on in here?

Oh, we have so much going on in here. All of the fixtures are brand new. So you have a brand new vanity mirror, toilet, bathroom, or bathtub with surround and shower. And we had to redo all the piping for these. And I think pretty much the only original thing in this bathroom is this lovely medicine cabinet. And it's quite an interesting little character. But so, again, just trying to. We try to modernize the essentials, you know, like your kitchen, your bathroom. We try to modernize them, but then we still try to keep it classy, so then you get that modern feel, but with the character of a classic house.

Perfect. And then we, like you said in the kitchen, the LVP is for durability. You Know again, bathroom, very wet, can withstand that. It can withstand a lot of weather, if you will. And we actually. Bulldog Renovations has a saying called bulldog tough. So it's built to withstand a bulldog, which is good for tenants.

Yeah, it's great. I thoroughly enjoy LVP because it's great for pets. It's great for people with allergies because you don't have any fibers for allergens to get trapped in. And then. Yeah, you also. It's easy to clean. So you're giving kids a bath and they're getting water all over the place as kids do or as adults do. You know, it's easy enough. You can just wipe up the floor, and it has pretty good traction, so it won't slip as much as you would on a tile floor.

Perfect. I did not know that fun fact about allergies. Now I do. That is good to know. All right. And then I think this was just another bedroom. Again, this would be like the master bedroom.

You have two closets.

Very nice, large closets.

Yes. Well, this room used to have a balcony, so.

Oh, interesting.

Where the doorway was for the balcony, but that was. It's a bit of a safety hazard that we didn't want, so we just walled it off and re roofed. And so now there's no balcony, but you have a really huge closet or a nursery or a small office.

So in a nutshell, it sounds like there's a couple of things. So one, if the hardwood in home is good and durable, we will keep it. We will refinish it and everything, clean it, you know, do all that stuff. But we will keep it, one, for durability and two, to keep the aesthetic of the original home. And that's all amazing things for tenants. Turnkey properties. And then same thing with the lvp. If the floor, you know, does need replaced, we will put in that LVP for durability. What else can you think of off the top of your head?

Well, for a lot of our turnkey properties, I mentioned it downstairs in the dining room, but we'll install blinds for all of the windows.

Oh, yes.

So that the tenants have the option to change their lighting, and then that keeps them from having to blankets or she sheets. And they're. They're standard in all of our key properties. And again, for durability purposes, we generally don't keep a carpet because that's a high maintenance. Yes, high maintenance. So that's. That's pretty much most of it. Yeah. We repaint, we'll do drywall work, and we'll just take care of a lot of, like, the existing issues. So we have to run new electric. We'll run new electric. And we generally try to make sure that there's a washer, dryer, hookup for a future tenant, and then a place for a stove and a fridge in the kitchen. So that's mostly what we do for turnkeys.

Perfect. Let's go ahead and go back downstairs and we'll do a quick recap. Excuse me. Go over some numbers as well. All right, so we are back downstairs where we first started at the beginning of the video. We're just going to give you some quick facts about the home. We already mentioned that it was a historic district, actually. Let's talk about that for a second. Did you guys run into any issues with it being in the historic district?

A lot of the issues that we ran into actually had to do with the exterior of the home.

Okay.

Because that's what people see when they drive through the historic district. And so there are certain standards that we had to bring the exterior up to in order to get a certificate of appropriateness. Appropriateness.

Okay.

Which is what we needed so that the city doesn't get extremely mad and start charging us in our employ. So we have to. We had to apply for the certificate of appropriateness, work with a lot of vendors or a lot of inspectors, and we're always in contact with our inspector with the historic district because there are a few things we still need to work on.

Okay.

And we just have to get better understanding the next time that we work with the historic district so that we know what they're expecting and we know what to tell our contractors so that it can be the best.

And every historic district is different. Jennifer and I, our rehab coordinator, we actually did a. An episode on what to expect when buying any home in historic district. That doesn't go to say, like I just said, a lot of historic districts are. They have kind of different niches, if you will, and different requirements for the exterior. And something to do that we learned is get everything approved before you start working to avoid pain, if you will, because the city will give you a citation and they will find you and all these things. I don't know if that actually happened with us in this case, but I know that they will. And they don't like. They typically like the game of. Well, we didn't know. And a lot of people that are in historic district live or that are on the historic district committee live in the historic district. So they usually have their eyeballs on the property. And they like to keep everything, you know, similar to keep that historic district thing. So do we have any setbacks with anything? I know you kind of said you had to get some things approved. Did that affect the timeline at all?

It has affected the timeline a bit, but it's more effective, the budget, because we had to put more money into the property.

Okay.

So like getting the exterior power wash or getting a stone basin to work on something, or, you know, just getting like vegetation removed, you know, all of these things, they all add up. Yeah. And so that can affect your budget, which can set back the timetable. As far as the interior, there weren't really any setbacks.

Okay.

Sometimes you have a setback with like actual permanent, like electrical or H vac. Sometimes you can get hung up on those permits. But that doesn't. That's just more of like a general contracting, not necessarily historic. So historic. We just had to take into account what they were asking us to do. And then we just added it to the work that needed to be done.

Perfect. So how long did it end up taking to get this property done?

So we bought this property back in October of 2021.

Okay.

And I believe we finalized all of the interior. Interior and exterior work back at the end of April. Okay. So it took a number of months to get everything to just really get the ball rolling with all of the work that needs to be done.

Yeah. And like, I'm sure, like you said, the historic district and having some meeting to get some things approved and things like that set that back a little bit. Which is another thing that Jennifer and I talk about in our episode on what to expect and find in historic area. So as the property sits right now, today, this property is selling for $94,900. It is already under contract. So unfortunately, if you're watching this video and you're interested in it, I apologize, but we should have more coming up for you in the future. The projected rent on this per month was $900. We actually got it rented for $999.

So a little more.

I'm sure the investor who acquired this property was very pleased to hear that. We always love hearing that. However, with those original numbers, the cap rate sat at 8% and the cash on cash sat at 12.5 12%. Which brings you to a monthly cash flow of $225 and some change a month as I made it. Like I said, that was with the original rent price at 900. So that is amazing. This property is beautiful. I am a little jealous of the future occupants of it.

I'm really excited for it. I think this will be a great home for anybody who gets to live here. Absolutely.

There's so much character in it. I'm glad we were able to preserve what we could with that. Try to keep the historic in it a little bit. I believe the property was built in 1928. I believe I will fact check that and put that in here. So that was very cool and it's nice to see some of the original details still in here in 2022.

Yes.

Do you have anything else that you would like to add on that, though?

Not particularly. I think we covered everything.

Yeah. We will be doing more of these videos in the future. Some in Pittsburgh district, some next one. We should probably do a non historic. That way you can see some other changes in that and kind of see the difference in it. So I'll be excited to show you guys that. But for now, if you guys have any questions please contact us@podcastreedomrealestategroup.com any questions regarding getting started in real estate investing or expanding your portfolio or learning more about what we do here? If you want to chat with one of our property managers or anything that's possible management, you have a podcast suggestion. Anything. We would are more than happy to help answer any questions you may have. We always like to end these videos with Investmart.

We're happy.

Bye guys. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.