Endicott NY
Acquire a distressed 4-bed/3-bath SFR for cash well below replacement cost, renovate for livability while house-hacking during college to save on rent, then exit retail once legal/title issues were resolved.
Numbers
Sale Price$130,000
Net Profit (est.)≈ $65,000
ROI≈ 200%+
Before and after
Scope of Work
- Full interior gut → new sheetrock throughout
- Electrical: two new panels ($6,000)
- Flooring: sanded and stained hardwood
- Kitchens & Baths: new appliances, new tub, cosmetic refresh of 2 large baths + 1 small bath
- Roof: patched minor issues (roof structure intact)
- Paint & finishes across all rooms
- Extensive demo, pest remediation, and small-scale handyman fixes
Financials
| Purchase (Oct 2019) | $19,900 |
|---|---|
| CapEx / Repairs | $40,000 |
| Holding Costs | ~$4,000/yr × 4 yrs ≈ $16,000 +$100/mo pest × 12 ≈ $1,200 |
| Sale (Jul 2023) | $130,000 |
| Net Profit (est.) | ≈ $65,000 |
| ROI | ≈ 200%+ cash-on-cash |
Owner-occupied; no mortgage. Utilities not included in estimate.
Timeline
Planned: 1 year hold after repairs.
Actual: 4 years (2019–2023) due to title litigation delaying resale.
Impact: Added ~$12,000 in holding costs vs. original plan.
Risk Register
- Title Dispute: 1999 foreclosure lien discovered post-purchase. Settled in court via title company/attorney → ~2 years delay.
- Pest Infestation: Long vacancy → $100/mo mitigation for 12 months.
- Budget Stretch: Full gut exceeded initial repair expectations; mitigated by self-performing via D&E Handyman Services.
Vendors & Compliance
- Electrical: Licensed electrician for panel installs
- General Work: D&E Handyman Services (demo, drywall, flooring, painting, finishes)
- Permits: Not required for interior cosmetic work; electrical covered by contractor
Outcome
- Resale: $130K exit on ~$60K all-in basis
- Cycle Time: 45 months (vs 12 planned)
- House-hacking eliminated rent during college → boosted savings and ROI
Lessons Learned
- WorkedHouse-hacking saved thousands while property appreciated
- WorkedAggressive buy-low enabled high ROI despite extended hold
- Next timeTighten title/foreclosure diligence pre-close
- Next timeConsider subdivision / rental split to enhance cash flow during long holds
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