[SOLD] Dual income 9%GY with room to add value
14c & 14d Gordon Road, Western Heights, Rotorua - $241,040
Dual income - renovate and return. Spruce up this property and reap the rewards.
Patience is a virtue - on first viewing of these units they were overpriced and in poor condition. Tenants were cold and damp and the only heating, a wood burner, was missing the glass door. Just like you see on TV - they lived in hope that a new landlord would give them the home they desire, happy to pay more for something warm and dry!
We walked out when told the vendors expected price.
Now as time has progressed (I think they call it vendor conditioning) we have this property under contract for a much more acceptable price and with a little effort will become a nice little earner and equity gain potential.
Two 2 bedroom units on separate titles on a large piece of land close to Western Heights High School with a nice bush backdrop at the rear, giving a lot of privacy.
Accessed by its own driveway (needing repair) these fibrolite units would scrub up quite nicely.
The similar block in front has been renovated and looks very nice.
Access is via either the front ranch slider or a single door into an open plan lounge/dining area. The kitchen is at the rear with access to the back yard via a door.
Unit C appears to have good carpets and wood grain lino and is in reasonable condition apart from some interior touch-ups.
The kitchen is original with a tenant friendly stainless steel bench top, the floor is tiled. Cupboards could be refaced or just repainted.
The bathroom area has been repainted however there appears to be areas of rotten wood, so I would suggest new shower linings and vanity to make this area sparkle again.
The tenant of 9 years said there had been water leaking through the toilet ceiling during the rainstorm at the weekend.
Two double bedrooms are in a tidy condition. No heating in the property, tenant uses a portable gas heater.
The tenant would love some sort of porch for her small dog to keep warm. The current landlord had promised a carport but this has never arrived.
Unit D is very similar, painted in a modern tan colour but possibly too dark for the size of the unit. Carpets are OK but as there is a large hearth for the fire it would benefit from new carpets. The wet areas are tiled and in reasonable condition.
During our first viewing, one bedroom ceiling was completely damp. This leak has been supposedly fixed. However in light of the neighbouring toilet leak and the fact that the roof is flat and sloping to the rear of the building we were unable to see whether it was rusty, but I would imagine it requires replacing.
Budget for a replacement roof and add insulation while this is being done ( ~$8000) and make these tenants warm and cosy.
The property has been repainted inside however could do with a touch-up.
The exterior has some portions of rotten wood that would need repair or replacement. the fencing is somewhat ramshackle and would benefit from a replacement.
Currently, the tenants are paying $370p/w however the market rent should be $420p/w. After a makeover, these could rent for $490-510p/w.
Spend about $35-$40k on this property and it would come up very nicely, increasing the yield and value. Currently it is a blank canvas ready for a caring landlord to make their mark.
Carpets UNIT D - $3000, Bathrooms - $5000, Roof - $8000, Painting interior UNIT D and exterior - $7000, Heat pumps - $5000, Driveway??
Some exterior wood needs replacing.
We can assist with tradesmen to carry out this work on your behalf.
Easy walk to Western Heights High School as well as numerous other schools, views of Mt Ngongotaha and supermarkets and shops nearby. handy to bus route to the city.
Debbie Van Den Broek
Licensed Salesperson - REAA 2008
021 131 6119