We love to work in Bethlehem because it is such an adorable town. We found this charming house at the top of a hill on the edge of Lehigh University in 2019. It could have been rented "as is" to a couple. But we decided to add value by adding a half bath and finish the attic to rent to students. Short story, permits held us up and we missed the semester. When COVID-19 started, we were breathing a sigh of relief as the young couple with a new baby pays rent and has no intention to disappear back to their parents' house.
The rehab was more complicated than we thought. We wasted time and money on an architect that took the project a little too seriously. And we naively thought that adding a half bath was no big deal since the rough plumbing was already there (strangely someone had cemented it and the contractor worked for 3 days to get it opened up)
Purchase Price (incl. closing costs): $68.561
Rehab: $29,121
Total: $97,682
Rent: $1,125
$13800/yr Gross Income
taxes $1388
insurance $293
Capital expense – 350
Management Fees $945
Misc $500
ROI 10.5%