In November 2018, we acquired a historic three-bedroom, two-bathroom home in the West End neighborhood of Atlanta, Georgia for roughly $231,000. We initially planned to spend roughly $10,000 on minor cosmetic improvements, then rent the home for seven to ten years while the market appreciated around it.
After starting work, however, we uncovered worn-out support beams beneath the home that needed to be reinforced. This is a classic example of an issue that isn’t apparent during the inspection but appears once you begin working on an adjacent part of the home. Since we had to perform the structural work, we determined it was worth it to proceed with a full renovation at the same time. For curb appeal, we tidied up the landscaping and repainted the exterior. Inside, we upgraded the kitchen with all new appliances, cabinets, and flooring, and fully remodeled both bathrooms.
In total, we invested roughly $65,000 into renovations, ending up with a fully modernized and structurally sound historic home that retains many original details. These improvements should allow us to rent the home for $1,600 per month, 33% more than we originally expected, though we are also considering listing it for sale.
Investor FAQ: How does an individual project impact your portfolio?
With renovations complete, any rental income or potential profits from the sale of this property would contribute to future net asset value (NAV) increases for the National eFund.
We look forward to providing ongoing updates about the progress of our single-family rental and renovation strategies. As always, please don’t hesitate to reach out to investments@fundrise.com with any questions or feedback.
