Recently my boyfriend, Dan and I purchased our first house in Sullivan, WI! We purchase a foreclosure knowing that we wanted to do remodeling. Reasons why we purchased a foreclosure are because we bought the house for under market value, therefore we already knew there was equity in the house. We also knew that with home prices on the rise, we could fix up the inside and within 2-3 years sell the house for a profit. I feel that this is a great way to build our "nest egg."
When we wrote out an estimate of what we needed to make the house livable we came up with the following:
A New Well
New Furnace (It had a bid old oil furnace and oil tank-EXPENSIVE heating)
Install Central Air
Update some electrical and plumbing
19 New Windows for energy efficiency.
Those costs alone are $15,000.
We plan to roll those costs into our rehab loan. We were able to get a 203K REHAB Loan for the house. Which was the purchase price + the repairs. Our monthly payment would be based on the total of those two costs. HOWEVER, it only ended up coming out to $50/month more than what we are paying in a tiny 1 bedroom apartment in Okauchee. We were very excited to pursue this project!!!
The rest of the remodeling will come out of our own pockets, so we are contentious as to what updates we will make that will bring us the most value to the house.... stay tuned for more!!
Contact me to find out how I can help you tackle purchasing a foreclosure in Waukesha County, Jefferson County, or Milwaukee County!!
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