UP CLOSE & PERSONAL
Photo courtesy of John Tesh
CASE STUDY
THE FOLLOWING IS A CASE STUDY OF ONE REHAB DEAL, COURTESY OF JOHN TESH, WHO WITH HIS WIFE, CORINNE, OWNS CITYGATE HOME LLC IN GREENSBORO, N.C. EDITOR'S NOTE:
deal. We planned on selling it on the MLS for around $159,000, just doing the roof and cleaning up the yard, updating the HVAC and letting the new owners paint the outside and inside. As with most rehabs, we ran into some issues our initial inspections didn’t reveal. We found an old, unused but still connected hot water tank hidden inside the kitchen cabinets that had been leak- ing. We had to tear out the cabinets and rip up the floor down to the joints. This forced us to change our exit strategy, so we totally changed gears and did a full rehab. We actually added a second bath- room, and that allowed us to maximize our return on investment. So the house was listed as a three-bedroom, one-bath. It’s now a three-bedroom, two-bath. It really could be a four-bedroom, two-bath. There was an addition built on the back in the ‘80s. That is the flat- roof part where it joins the back deck. Someone could turn that into a huge master suite, and that is where we added the second bathroom.
WHEN CONFRONTED BY THE UNEXPECTED, SIMPLY CHANGE GEARS, AND YOU CAN STILL COME OUT AHEAD.
Anatomy of AWin-Win
by John Tesh
months of storage for her stuff. This house is in a smoking-hot neigh- borhood called Lindley Park in Greens- boro, N.C. The houses there were built in the ‘30s and ‘40s and feature mature trees and large yards and are minutes from shopping and downtown. Initially, we were going to keep the original kitchen and bathroom as is. We were going to do what HomeVestors calls a “whole-tail,” a wholesale-retail
e found this house by a referral from a past customer. She knew
W
we paid cash for houses and closed quickly. The owner was in trouble and getting ready to go into foreclosure. It didn’t fit our normal house-buying mod- el, but we knew we needed to help her. We put together a deal that worked for both of us. We were able to help catch her payments up, close on her house, plus pay for her move and six
54 | think realty magazine | mar :: apr 2016
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