Hey guys, Sharon from digital nomad quest and today I’m going to show you guys our renovated moldy house that we bought $120,000 now worth possibly $350,000. Now if you guys are new to this channel, welcome, I’m all about teaching on how to build passive income become financially free, and design your best life. So you guys are interested in that make sure to subscribe and hit the bell button to be notified of my latest videos.

So this moldy house has been a long time coming. I know you guys might have seen my previous videos on this one, I really wanted to document the entire process for you guys. We flown over multiple times. And this time actually went through and I’m going to be showing you guys some of the renovations that we did. If you guys don’t know already, this is a four bedroom two and a half bath, it was completely moldy before we bought $120,000 we’re renovating it possibly around $80,000 We’re gonna see all the numbers later when it’s completely finished up. It’s about ready now it’s probably going to take another week before we start working with our property manager to start marketing it for tenants. And the plan is to do a cash out refinance on this property that hopefully is worth $350,000. Now judging from the comps it’s really appreciated in value before the projected was possibly 260 to $270,000. And then it became $300,000. And hopefully now it’s like $350,000. We shall see though when we get that cash out refinance.

Now if you guys haven’t seen the previous videos, make sure to check those out because it outlines a lot of the process a lot of the thinking behind our decisions as well as our game plan in the future, I plan on making more episodes where I break down the entire financials of this project, including when I rent it out and get that cash out refinance. And now without further ado, I hope you guys enjoyed this walkthrough of the property. I apologize for some of the audio because it does get a little bit echoey. But in the future, we plan on upgrading our mics for when we actually go outside and visit project. So hopefully the quality improves. Hey guys, it’s Sharon from digital nomad quest. And we are here at the moldy house project today. I’ve been talking about it in many videos in the past. So we’ve actually gotten a lot of it renovated, it should be ready in a couple of weeks. I’m pretty excited as you guys know the purchase price was $120,000 are probably going to be all in at $200,000. And ARV possibly could even be $350,000.

Now we’re gonna have to see later on, but I don’t think we’re gonna sell it, we’re gonna keep it as a rental, we’re gonna burn it so that we can cash out refinance, get the money back out, put it into other projects while you rent this property out for $2,400 a month, possibly. So I’ll keep you guys posted on the numbers. And in a future video, I might give you guys a glimpse of like material costs and things like that once we have everything finalized. But let’s go ahead and check out the project right now. So let’s walk inside. As you guys can see, it’s basically renovated almost completely done, it’s probably going to be done in a few weeks. So it used to be down to the size in like a lot of these rooms. Now it’s been fixed up, we have light gray walls, we got new baseboards that are white, we do this a lot. We did this for our actual home in the bay area as well. But we like those colors. So let’s keep going. Here we’re actually deciding on the countertops right now it’s this tan color, that’s not the best we could possibly do a white or a dark color, but I guess they ran out of paints in this area for the countertops. So we could either resurface it or just leave it resurfacing would be about $1,200. But since we’re doing this as a rental, I thought you know, it’s actually a really good condition, we could probably just leave it and then in the future when tenants move out, we could probably fix it up if we want to sell or something like that.

So that’s kind of the plan we’ll see if that changes, these candidates actually were just restored. So if you want to save costs, you could try it cleaning it setting it down and then painting over it with a nice fresh coat of paint. I think it looks pretty nice. So this is actually the master bedroom. So this is a four bedroom two and a half bath. So you guys can see it goes into the master bathroom here and apparently this was like awful before and it went into the garage. But now we fix it up so it’s like pretty nice in here. I didn’t actually go into this property when it was moldy because I was scared Sean was okay with it. So I didn’t even know that it was like that bad but seeing the pictures I actually didn’t go inside. It was really bad. And now it’s like nice it’s gonna be like closet space. This is a bathroom space. So yeah, keep going. So we got all these new ceiling fans so I guess in Texas it’s like pretty normal to have fans with the lights and stuff like that to keep cool during this hot summers. So I think it looks pretty nice and had it all throughout the house. We do have central AC in this property but if you want specific cooling and specific rooms that’s why we have the ceiling fans. And yeah, it’s quite common in this area. Can we see the garage right now it’s kind of dark. So let’s just keep walking up.

So we got all new carpet upstairs and on the stairs as well. So we chose this color as you guys can see here. So pretty Basically, it’s a darker shade. And that was actually done intentionally because as a rental if they create any stains or anything like that, not as obvious. And also carpet is actually pretty common in this area, we looked at a lot of comps and they had carpet in the bedrooms and upstairs areas. So we wanted to do kind of the same thing. Obviously, it’s easier for rentals as well. And it’s also really cheap as well, we got to set a really good price. So I believe is about $2,500. For carpet installation, I can get the numbers and a future video. Hopefully you guys want to see that let me know in the comments.

So it looks about the same in every different room. Over here in the laundry room, we decided to keep that vinyl plank flooring here. Because it’s waterproof, it’s good for like laundry room for the bathrooms. And we’re just putting it all those rooms as well. Everything else would be carpet upstairs. I didn’t show you guys but there was a leak behind this wall. That’s why I got all moldy and stuff. So we’ve repaired everything here and we repaired the bathroom over there. So the cause of the leak was actually right here from the toilet supply line, it got all messed up here. So we’ve repaired this as well. And then we actually got this around that makes it really easy to install, it’s a lot cheaper as well, because you just put it in really easily instead of doing all tile like it’s just really easy to install and it’s a lot cheaper.

Alright guys so we’re in the backyard right now, there’s a bunch of stuff in the backyard, it was like a little jungle here. So we actually cut everything. So it looks a lot nicer. It’s a pretty big backyard. So quite pleased with it. This home is actually pretty big. It’s about 3000 square feet, again, four bedroom, two and a half bath. It’s like double the size of our Dallas home, which I was like maybe we should just move in here. So I won’t do that. But I’m really excited for this project. Because this is finishing up in a couple weeks, we plan to rent it out. Pretty soon here, we actually spoke with the contractor earlier. And he mentioned that these homes are being rented pretty high. And the home prices are going up a lot as well. So initially, we thought okay, maybe $280,000 then became $300,000. And now it’s like maybe 350, or even high 300 Or what we could sell it as but again, we want to actually hold on to it do the bur strategy and do a cash out refinance. Because we actually think that the properties here gonna keep appreciating in value. We stayed here a few months ago for a couple of weeks. And we actually enjoyed it here.

The people here are really nice, they’re really helpful as well. And I don’t know, it just seems like a great neighborhood to possibly raise a family and stuff like that. So I think that the prices here can go up a lot, you know, home prices in Texas in Austin and Dallas area as well. They’re going up a lot, a lot of people are eyeing Texas, which is why we actually moved here, as well as we’re gonna hold on to this rental. So be on the lookout, we’re gonna probably invest a lot more out here as well as in Dallas, we actually did this weekend trip. So we just moved into the Dallas home probably do a video on that as well. And yeah, so be on the lookout, we’re gonna have a lot more projects out there. Another thing is, while we’re out here, when we move here for like a year or two, we can film a lot more content show you guys a lot more.

I think you guys have been enjoying this moldy home project a lot because I’ve been showing you guys the behind the scenes, giving you guys the numbers. I hope to give you guys more numbers when we finalize the payments and everything like that to the contractor and stuff I’m adding Shawn in here in the video. Do you have any final thoughts about this project?

You know, this is a big risk that we took, we bought the property, we knew that there was a lot of issues with it at the time, we did have a crew either. So we had to physically go on faith, though to get it on a certain budget. And luckily by talking and work with our people seemed like we’re going to be able to make those dreams come true. And of course, we’re excited for that final phase where we do the burr strategy, and we actually refinance and offer capital back out to use that money on a future project. I also want to mention, I think this was a risk but also a calculated risk because I do feel like I’ve been monitoring the prices, I saw that the ARV was pretty high, you know, speaking with the wholesaler and you know asking around it seemed like we were going to be able to get those repair costs to a level where we would profit if we did want to sell I would say that you know, if you guys are trying to do a project like this, be sure you have experienced before you do something like this. This was kind of a bigger project where you know, the entire home needed renovation, it wasn’t completely gutted, but a lot of it was gutted out and we had to do an entire remodel, but I’m looking forward to a lot of the things that are coming soon.

We have this contractor connect also actually flips homes and we plan to partner in the future in homes in this area. We’re going to do a lot of networking while we’re in Dallas. We’re going to go to a lot of meetups, you guys should definitely do stuff like that to go to your local meetups, start getting connected with different agents with different contractors, wholesalers, see if you guys can get more deals from people and create those partnerships with other investors as well. So that’s what we’re planning to do. We’ll keep you guys updated on the progress So I hope you guys enjoyed this walkthrough of the moldy house. It’s really come a long way since we bought it $120,000 literally found this on Facebook groups, right? It was completely moldy. Got it remediated then got it renovated and now it’s looking so nice that I would actually live in this property for sure it’s even bigger than our Dallas property. So when we visited we were in awe now if you guys liked this episode, make sure to comment below with any questions you might have and maybe I’ll cover in a future episode mash the like button subscribe, hit the bell button to be notified my latest videos and I’ll see you guys in the next one.

Transcribed by https://otter.ai