Longhorn’s borrowers found this deal through a local wholesale group. The property was a typical rehab that needed updates throughout the entire house. The renovation consisted of installing granite countertops in the kitchen and bathrooms, stainless steel appliances, wood flooring, and grey paint to lighten up the house. The encouraging part was that the large expenditure items like the HVAC, electrical, roof, foundation and plumbing remained in good working order. The borrowers liked the Lewisville area since it was a growing Dallas/Fort Worth suburb with access to great schools and affordable homes in the $200,000-$250,000 range.
The borrowers underestimated the renovation budget in several areas so had to cover the overage out of pocket. They should have foreseen certain issues, and others were unexpected surprises. It was obvious from first glance that the front and back yard were in terrible shape, but they only allotted $5,000 for landscaping. There was substantial work to be done including trimming of very large trees with numerous branches, removing dead crepe myrtles, and helping with water flow by installing French drains. The unexpected came in the form of unwanted pests that required professional assistance. The pest company worked with the contractor to fully remediate the problem in a timely manner. While the rehab went over budget by $13,000, the borrowers still walked away with a great return on their investment.