PROJECT NAME: The House With Rats
PROJECT TYPE: Retail Flip
ADDRESS: 3308 Willow Creek Drive Midwest City, OK 73110
CLIENT: Table Investments
PROFIT: $8,741.39
BEDS: 4
BATHS: 2
SQUARE FOOTAGE: 1540
This project was one we did for ourselves. This project made us question if we can even call ourselves investors. I mean. This one was almost literally hell on earth.
Okay, okay. We’re done being dramatic. Really though, we almost didn’t even post this because the rehab budget was so outside of what the original plan was (attn: rat photo below, the ice storm that made us cry, and the neighbor who showed up to every showing to tell buyers not to house… more on this below).
Goodness. Where to start. The budget on this was a train wreck. It wasn’t because of a bad contractor, bad inspector, or bad management. It was the freaking rats.
The seller wouldn’t turn utilities on when we walked through, but we bought it at a steal so we were fine “absorbing the risk” (famous last words).
A couple days into demo we realized that there was a rat infestation so bad it couldn’t be treated by an exterminator. BLOWS OUR MINDS how this is even possible. Essentially, they chewed through the wiring (we hadn’t planned to replace because the panel was fine) and used the insulation in the walls as their beds and bathroom (which we hadn’t planned to address because the insulation was sufficient from an attic view). We technically could have gotten away without replacing so much, but we just couldn’t sleep at night if we did. We gutted the whole thing.
This timeline went over, but it was a conscious decision. The timeline honestly didn’t hurt too bad because it didn’t just slowly slip away. We made the call within about a week to reassess. Citizen’s Bank was our lender and they were super flexible when we explained why we needed an extension to get things done the right way.
This property is located in Midwest City. The property is conveniently located right off a major highway making it easy to commute to most major employers. It is also really close to Tinker Air Force base. The area doesn’t see a ton of appreciation but it’s incredibly predictable when it comes to sales prices and rent rates.
Address: 3308 Willow Creek Drive Midwest City, OK 73110
Neighborhood Class: C+
Closest Highway: I-40
Wow! That would be quite the setback. Thanks for sharing and I’m glad it seems to have worked out. In the end it looks like a buyer and/or new tenant got a nice home.
It was a rough go for a couple weeks there, but alls well that ends well! The buyer was super great and we learned a ton.
Very nice rehab! I think I actually remember seeing this house on the market when shopping for my first rental. I hope to do rehab soon myself in Midwest City as this is my target market area.
We love that area! Appreciation isn’t usually stellar, but it’s predictable. We love that about it!
The final product looks great, glad it all got worked out. I do have a question on the numbers, particularly the equity after repairs. I’m wondering how you would have a 39% equity position, on a house valued at $124k, if your overall investment into it (purchase, re-hab, holding) is at $108,613? Wouldn’t that be about 12.3% equity? Am I doing the math wrong?? Thanks in advance!
Hi there! We’re so sorry for any confusion. Our “All In” number is $78,613.57! If you don’t include holding costs our purchase price and rehab cost us $75,285.66.
We want to make sure the info we are putting out is easy to understand! What led you to the $108,613 number? We want to be sure we can make some tweaks before we send our next one out so that you guys can easily interpret!