I’m sure real estate investors work very hard to manage the properties they purchase, to ensure that they not only net a good profit, but become a great home potential buyers. Quality materials, attention to detail, and preserving a home’s character are all parts of making a good flip a great one.
But some investment properties miss the mark. Whether generic cabinetry, poor planning, or bad layouts, some investments end up being properties that still need plenty of work. Today’s Tuesday Two Hundred is a great example of a so-so renovation that is on the cusp of being good.
Let’s find out why:
First, the basics: 8927 Daytonia is a one-story traditional cottage in Little Forest Hills — a highly desirable East Dallas neighborhood near White Rock Lake and the Dallas Arboretum. The neighborhood is known for it’s Austin-like feel full of colorful little cottages. Initially intended to be a neighborhood of lake homes for those who wanted to have a place to stay near White Rock Lake during the summer, it has been transformed into a lively neighborhood with a slogan that says it all: “Keep Little Forest Hills Funky!”
This particular cottage is large compared to some of its neighbors. It is a four-bedroom, two-bath home with more than 1,300 square feet on a 0.173 acre lot. It is marketed by Amir Baluch of Investment Club Realty for $264,900. The nearest comp is a super-funky three-bedroom, two-bath cottage at 8810 San Fernando Way, marketed by Trisha Moore of Keller Williams Realty for $247,000. That comp has more curb appeal and a much tidier and welcoming backyard, as well as more square footage at 1,650. Both of these properties have been sitting on the market for more than a month.So, to me, the biggest issue on this property is price. It’s priced about $15K to $20K too high for the interior finish-out, which includes laminate floors, budget cabinetry and tile, and a really bad kitchen layout that would be so much more appealing if it opened to the claustrophobic dining room.
Here’s the thing: If you’re going to tear out and renovate a kitchen inside a home built in the 1940s, you’re going to have to tweak the layout of the range and refrigerator to make it work. That means moving the range into a spot where it won’t be right next to the refrigerator. Sure, that takes a little more time and planning, moving gas and electrical lines, but results in a much more functional and therefore desirable kitchen. This investor didn’t, and that resulted in a layout that leaves this weird space between the wall and the range, where you can’t put cabinetry but you don’t want to leave a big gaping hole. It’s a total waste.
There are four bedrooms in this house, but, of course, they’re all small. A better option would have been to expand one of the bedrooms into a master suite. That would put this home more in the $260,000 price range for sure. Still, there are two baths, which is uncommon for this neighborhood of 2/1 bungalows and cottages.
The backyard is a bit of a bummer to me. There’s a cool brick patio, but look at the weeds! There’s no landscaping, either. No containers to brighten it up. No nothing. You just end up looking at this lonely patio set and the weeds. All those weeds. This is a lost opportunity, for sure.
Now, if the investor wants to take this (free) advice and work a little magic on this house, I’m sure they’d get it sold quickly! What do you think?
