Real estate agent Drew Levin and contractor Danny Perkins search for a single-family home to add to their roster of rental properties. With $350,000 to invest, they tour a three bed/two bath house for $305,000 that needs at least $25,000 in bathroom and kitchen remodels. Next, they look at a place with four bedrooms and two baths - it's priced at only $220,000 but needs all new wiring and an exterminator. Finally, they tour another three bed/two bath home on a half-acre lot with views of downtown Minneapolis. It's in a prime location, but looks straight out of the seventies. And at $340,000, there's not a lot of room to make improvements. They ultimately decide to purchase the most expensive place because of it's potential for premium rental income.
Real estate agent Drew Levin and contractor Danny Perkins check out up and coming neighborhoods with $200,000 to spend on a new rental property. They tour two homes - both have three bedrooms and one bathroom, and both are listed at $185,000. The first one has an open floor plan and a large dining room with great woodwork, but the bathroom needs a remodel. The second place has a completely updated bathroom and three newly renovated bedrooms. The living room is tiny, but they decide to purchase this one because the kitchen is so large that they can use the formal dining room as a fourth bedroom...and increase the return on their investment.
Real estate agent Drew Levin and contractor Danny Perkins have $230,000 to spend on a new rental property. They tour a four-bedroom house that's listed at $185,000 and a duplex for $200,000. Both need about $15,000 in renovations. The repairs in the house are straightforward, but the duplex has an upper unit with a funky layout that Danny finds challenging. Plus, he just had surgery on a torn Achilles tendon and will have to rely on Drew to do most of the renovations. Drew prefers the duplex and promises to help as much as possible to make this one work. He teams up with licensed contractor Andy Corbin to realize Danny's plan of a better layout in the one-bedroom apartment. They update the kitchen a space-spaving island that features hidden fridge and freezer drawers, and turn an un-used area under the pitched roof into a breakfast nook with a custom built banquette seating. Without having to touch the lower unit, they get it rented for $1,500 per month, and the upper unit goes for $1,300 per month thanks to the guys' planning and hard work.
Real estate agent Drew Levin and contractor Danny Perkins are looking to spend $400,000 on a new rental property...one of their biggest budgets yet. Drew surprises Danny with the first place - the house where they were roommates ten years ago. It's a great six-bedroom duplex, but the lower unit kitchen needs help, and the outdoor deck is falling apart. However, the yard is huge, and the upper unit is already rented for $2,800 per month. Next, they look at a three-bedroom place in Linden Hills, a desirable neighborhood that the guys have been trying to break into for years. In order for this one to work, it needs an $85,000 renovation that includes a kitchen extension and master suite addition. They ultimately decide against the risk of major construction, and buy the Green Monster duplex for $315,000. Danny's Achilles injury has healed, and he gets off crutches just in time to update the kitchen with a better layout, granite countertops, a subway tile backsplash, and a five-foot island with barstool seating. Outside, they build a new cedar deck, complete with a custom built bags set - the same lawn game that the guys used to play when they lived here. Drew takes a risk by bringing in potential renters before construction is finished, but it pays off when they decide to rent the lower unit for $1,500 per month.
Real estate agent Drew Levin and contractor Danny Perkins don't always find the perfect place, but their business depends on them continuing to purchase and renovate investment properties. This time around, they have $250,000 to spend...but they don't like any of the places they tour. The first is a four-bedroom Victorian with great original woodwork and a finished kitchen. But the only major work it needs is new windows, which wouldn't make much of a difference in the rental price. Next, they look at a two-bedroom house with a weird layout. The bedrooms and bathrooms are nice, but the kitchen is boxed-in, and there's a second living room in the back of the house that's just wasted space. Finally, they tour a four-bedroom place that listed at $240,000. But they're only in there a few minutes before realizing that the renovations would put them way over budget.
Real estate agent Drew Levin and contractor Danny Perkins are looking in one of the most competitive rental markets in Minneapolis - student housing. The over-supply of rentals near the University of Minnesota makes it hard to get top-dollar on a place, so the guys need to spend their $300,000 budget on a place with lots of potential for renovation.
Real estate agent Drew Levin and contractor Danny Perkins are looking to buy their next rental house just outside the city, where there is a good market for large family-friendly properties. But a master suite is a must-have for this search. First, they check out a six-bedroom house, listed at $245,000. It's huge, but all of the bedrooms have outdated panel walls, and none of them work as a master...until they hit the second floor, where one of the bedrooms has been turned into an unpermitted kitchen. Danny sees potential to knock down a couple walls and turn the entire floor into a master suite. Next, they look at a hundred year old house that's listed at $200,000. It's cheaper than the first, but doesn't have as many bedrooms. Also, the living room and dining room have been walled off to use as extra bedrooms by an owner/landlord that was obviously in trouble. But when the guys find that the kitchen and bathrooms have been newly updated, it's clear that another owner had already come in, tried to turn this place around and couldn't finish. This house has great original woodwork and decent bedrooms, but no real master. So when Drew and Danny get to the attic, they are excited to find a large space with lots of potential. They can increase the total number of bedrooms in this house, so the guys are sold. But first, they have to make sure that the updated kitchen and bathrooms have been permitted by the city. Once that's out of the way, they transform the attic into a master bedroom with corner closets, a reading nook, and two nightstands inset just under the pitched roof. Danny also builds a custom slatted bed frame and headboard, so tenants won't have to carry a bed up to the attic. Downstairs, the living room and dining room are opened up and tied together with a coffered ceiling and a salvaged antique archway that almost perfectly matches the home's original wood details. In the end, the projects come in $500 under budget, and the guys are able to rent the house for $250 over their original estimate.
Real estate agent Drew Levin and contractor Danny Perkins started their rental property business in 2007 when the real estate market was on a downturn. Now that it's recovered, the guys have to re-invent themselves if they want their properties to get noticed and stay rented. This time, they have $340,000 to invest and three properties to consider - which is good, because it gives them a better chance to find a place with the potential to really "wow" tenants. The first place is cute, five-bedroom, "grandma" style house that's listed for $250,000. The master suite has a weird vanity sink inside the bedroom, but everything else looks good...especially the blank basement, which the guys can turn into a great hangout space. The next house is a six-bedroom duplex, listed for $315,000. The lower unit is already rented, so the guys tour the upper unit, where they find decent looking rooms, but no wow factor. Upon second look, they realize the alcove in the L-shaped living room might work as a bar that would appeal to young, single tenants. Finally, they move on to a great looking three-bedroom listed at $220,000 - the lowest price yet. It has beautiful hardwood floors and a finished basement, but there's no room for improvement. Until they reach the attic, where Danny proposes raising the roof and building a huge master suite. When it comes time to make a decision, both Danny and Drew like the "roof removal" property, but it doesn't have the best rent potential. "Grandma's house" could pull in almost $3,000 in rent, but the "speakeasy" duplex would easily get $4,000 per month. The guys are excited to build their first bar, so they go all out with retro-style details, including silver damask wallpaper, faux tin ceiling panels, and custom-built cabinetry wrapped in leather panels and topped with a galvanized steel countertop. They also upgrade the bathroom down the hall with a new tile floor, a custom shelving unit that fits against the existing vanity, and an art deco inspired tub surround. With just $13,000 in renovations, the upper unit now stands out enough to bring in $2,600 per month in rent.
For their next rental property investment, real estate agent Drew Levin and contractor Danny Perkins have a budget of $250,000 and a couple of weird properties to consider. The first place is a duplex that's listed for $145,000. Neither of the units smell good, and every single room needs attention. But with a renovation investment of $55,000, they could eventually get $2,400 a month in rent. The second place is a 3,000 square foot Victorian home that had been previously used as a recording studio. At $190,000, it's priced higher than the first. But once they spend $40,000 on renovations, they could pull in $3,000 a month in rent.
Real estate agent Drew Levin and contractor Danny Perkins have up to $250,000 to spend on their next rental property and their choices are a rough looking house in a great location or a great looking house in a rough location. The first place is a four-bedroom in the suburbs, listed for $140,000. It's a proven rental market, but the whole place needs a face-lift and it wouldn't work for a family without a $20,000 kitchen addition. The next place is a five-bedroom duplex just a block away from a really hot neighborhood. It's more expensive than the first, but the lower unit is rentable as-is and the upper unit has loads of potential.
Real estate agent Drew Levin and contractor Danny Perkins have up to $400,000 to spend on their next rental property...and three varying properties to consider. First, they stop at a seven-bedroom house that's listed for $360,000. It's been divided into four units, but is only permitted for three units. The next place is a four-bedroom house for $180,000. It's in a great location and has a spacious basement living area, but every room needs an update. The third house has three bedrooms and is listed at just $110,000. It's priced low, but there's paneling everywhere and only one bathroom.
Real estate agent Drew Levin and contractor Danny Perkins have up to $250,000 to spend on their next rental property...and Drew's got two places that are similar, but a little different. The first place is a four-bedroom house in the suburbs that's listed for $220,000. There is carpet everywhere that needs to be replaced with hardwood floors, and the third bathroom is in the garage. The next place is also a four-bedroom house listed for just five grand more than the first, at $225,000. And it's right in the heart of the city. Both properties need about thirty grand in renovations, and would get about $2,750 per month in rent.
Real estate agent Drew Levin and contractor Danny Perkins have up to $300,000 to spend on their next rental property...and their choices are a three-bedroom house and a six-bedroom duplex. They check out the $245,000 duplex first. Next, they look at the house, which is priced lower, at $205,000. It's right in the heart of the city, but there's only one bathroom and the bedrooms aren't great.