A Standard Florida Home Takes A Hit From A Hurricane, Returns Big Profits
When Florida real estate investors John and Corinne Tesh first heard from the owners of this “bread-and-butter” Florida block house, they expected the property might be a challenge. Hurricane Irma had just swept through Florida, leaving devastation – and a lot of motivated sellers – in her wake.
Bread-and-Butter House: A property that appeals to the vast majority of homeowners and renters. In most markets, a bread-and-butter house has 3 bedrooms and two bathrooms.
As it turned out, however, the surprises on this project were a lot more positive than the two investors originally predicted. “The house had been passed down to the sons of the original owners, who had done very little maintenance on the home although they were living there. They were highly motivated sellers, and their mother actually gave us a call when they received one of our yellow letters,” John recalled. When he went out to do his initial evaluation, he spent about an hour with the mother and signed a contract with her on the spot. “My comps in that neighborhood showed an ARV of $124,000, and we bought it for $68,230,” he said.
The renovation took about seven weeks and included the removal of a large custom bookcase, installation of new walls and doorways, and a new master bedroom. “Because of Hurricane Irma, there were two trees blown over in the backyard and we had to replace part of the roof on the sun porch,” Tesh recalled. However, the big “surprise” was the payoff for adding the new master bedroom. “We sold at a much higher price than my original estimate thanks to adding that extra bedroom,” Tesh said. “We listed at $134,900 and sold in two days with multiple offers above asking.”
John and Corinne Tesh are residential real estate investors based in Orlando, Florida, where they own CityGate Homes, LLC. Reach John at firstname.lastname@example.org.