This first-time ABL borrower knew what he was doing when he purchased this Maryland property. It barely needed any work to put back on the market: his renovation budget was a mere $10,000 that the appraisal estimated would pay off tenfold. The most expensive aspect of this project was re-painting the home for $1,600. Some of the other improvements included adding carpets, refinishing the hardwood, and installing new appliances.
The appraisal was right on the money: that $10,000 rehab budget added over $100,000 to the property’s value. The investor found a coveted diamond in the rough and didn’t do more work than was necessary, maximizing profits and minimizing time and energy. All you have to do to appreciate this borrower’s real estate investment finesse is look at those numbers!