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We paid $5,000 for this house | Before & After Renovation

Austin Flipsters・25 minutes read

Lauren and Lincoln bought a rundown house in Brownwood, Texas for $5,000, renovated it for $98,000, and plan to rent it out for $1,100 per month, with a projected cash on cash return of 26.5% due to the strong rental market in the area.

Insights

  • Lauren and Lincoln are transforming a dilapidated house in Brownwood, Texas, into a rental property, facing significant challenges like code violations and city demolition threats.
  • Despite the initial $5,000 purchase price, the total investment in the property, including renovations, amounts to $98,000, with a projected monthly cash flow of $177 and an impressive yearly cash on cash return of 26.5% due to Brownwood's robust rental market.

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Recent questions

  • What are Lauren and Lincoln doing in Austin, Texas?

    Flipping houses

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Summary

00:00

"Old friends flip house in Texas"

  • Lauren and Lincoln, old college friends, are flipping houses in Austin, Texas, bought a house for $5,000.
  • The house is in Brownwood, Texas, two and a half hours away from their home office.
  • Lauren will design the house while Lincoln manages the project back and forth.
  • They are buying materials from Home Depot in Brownwood, Texas, for the renovation.
  • The house is in poor condition, with code violations and the city wanting to demolish it.
  • The plan is to renovate the three-bedroom, two-bathroom house and rent it out.
  • The house has significant issues, including a dilapidated porch, old insulation, and missing baseboards.
  • They found a sidewalk buried under brush in front of the house.
  • Simply Safe sponsors the video, providing home security for the remote property.
  • The design plan includes durable vinyl flooring, simple fixtures, and high-end decor for staging.

14:23

"Renovated Property: High-Quality Updates, Strong Returns"

  • The bathroom renovation includes insulation, a new tub, and the pending installation of a surround for waterproofing.
  • The exterior of the house will feature a baby blue front door to deter bugs from nesting, with a metal roof for durability.
  • The house, renovated for $5,000, is staged with high-quality furniture for rental or sale purposes.
  • The kitchen transformation includes leather granite countertops and a modern minimalist console for added space.
  • A spare bedroom is repurposed into a utility room, while the main bedroom boasts ample windows and stylish staging.
  • The master bathroom is bright and clean, resembling a luxurious hotel, with a rolled-up bath mat for added elegance.
  • The total investment in the property, including renovation costs, is $98,000, with plans to refinance and rent it out for $1,100 per month.
  • The rental property is expected to yield a monthly cash flow of $177, with a yearly cash on cash return of 26.5%, due to Brownwood's strong rental market.
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