Case Study: 1950s Ranch Home With Lots of Issues - San Antonio
Complete Renovation Breakdown - North Central San Antonio
This case study documents our purchase and renovation of a severely distressed 1950s ranch home with a little foundation settlement, outdated electrical, water damage, and deferred maintenance. We've included our complete evaluation process, cost breakdowns, and renovation timeline to help homeowners understand how we assess properties.
Property Overview
Property Type: Single-family ranch home
Built: 1954
Size: 1,100 sq ft, 3 bed/2 bath
Location: North Central San Antonio
Purchase Date: February 2026
Days to Close: 25 days - seller requested time to remove personal items (we can close as fast as 5 days if necessary)
Main Issues:
- Foundation settlement
- Outdated electrical system (ungrounded wiring)
- Water damage in living room and kitchen from leaking roof
- 30-year-old HVAC system (non-functional)
- Severe exterior and yard neglect
Property Condition - Before
The Seller's Situation
The homeowner inherited this property from a family member who had passed away. The house had a lot of deferred maintenance, and they were facing several mounting challenges:
- Didn't have time to commit to full remodel
- Growing concern about vandalism with the vacant home
- Was concerned about the increasing repair costs after getting a bid for the roof replacement
They needed to sell quickly without the hassle of managing a major renovation project while working a full-time job. After researching their options, they contacted Danny Buys Houses for a cash offer to sell as-is.
Our Initial Property Assessment
When we arrived for our walkthrough, we looked over of all major systems and structural elements. Here's what we found:
Foundation Issues
When we arrived, we noticed several signs of foundation settlement:
- Slight slope in master bedroom from center of the house to the exterior
- Cracks in interior drywall following stress patterns
Our Assessment: The house had experienced some foundation settlement, likely due to the expansive clay soil common in San Antonio and inadequate drainage around the perimeter. Piers are going to be needed.
Estimated Repair Cost: $10,000-$15,000 for foundation piers and leveling
Here are some pictures of the foundation work as it has already started:
Electrical System
The electrical system needed serious updating:
- Ungrounded wiring throughout the home (as witnessed by two-prong outlets)
- Outdated 60-amp service panel (insufficient for modern needs)
- No GFCI protection in bathrooms or kitchen (code violation)
- And the big one: No meter due to leaning meter loop
Our Assessment: A complete rewire was necessary for safety and modern needs.
Estimated Repair Cost: $10,000-$15,000 for complete rewire and panel upgrade
Leaking Roof
The roof had long since seen its prime and showed a lot of signs of wear and tear:
- Missing and curling shingles
- Soft decking underneath shingles
- Signs of previous patchwork repairs
- Inadequate flashing
Our Assessment: A full roof replacement was necessary to prevent further water intrusion and structural damage.
Estimated Repair Cost: $10,000-$15,000 for complete roof replacement
Issues Identified
| System/Area | Issue | Est. Cost |
|---|---|---|
| Foundation | New piers and leveling | $12,000 |
| Electrical | Outdated wiring, insufficient capacity | $13,000 |
| HVAC | 30-year-old system, non-functional | $8,000 |
| Roof | Missing shingles, multiple leak points | $12,000 |
| Kitchen | Original 1950s cabinets, non-functional appliances - no dishwasher | $8,000 |
| Flooring | Refinishing wood floors, tiling in kitchen and bathrooms | $5,000 |
| Paint | Peeling exterior, dingy interior throughout | $6,000 |
| Bathroom Updates | Two bathrooms complete remodels | $8,000 |
| Landscaping | Overgrown yard, dead trees, poor drainage | $2,000 |
| Miscellaneous | Windows, doors, contingency | $3,500 |
| Total Estimated Repairs | $77,500 | |
We took on $77,500 in guaranteed expenses so the seller didn't have to risk a dime.
How We Calculated Our Offer
We believe in complete transparency. Here's exactly how we determined our $74,000 cash offer for this property:
Step 1: Determine After Repair Value (ARV)
We researched comparable sales (comps) of recently sold, fully updated homes in the same neighborhood.
- 1,050 sq ft, renovated 2025, sold for $190,000
- 1,180 sq ft, renovated 2025, sold for $208,000
- 1,200 sq ft, renovated 2025, sold for $206,000
Average comp price: $201,333
We actually adjusted up slightly to account for the fact that the houses will be completely updated.
Projected ARV = $210,000
Step 2: Calculate Total Repair Costs
You may notice these cost estimates are likely lower than typical market rates due to our relationships with contractors and bulk purchasing power.
- • Foundation: $12,000
- • Electrical: $13,000
- • HVAC replacement: $8,000
- • Roof replacement: $12,000
- • Kitchen update: $8,000
- • Flooring throughout: $5,000
- • Paint interior/exterior: $6,000
- • Both bathrooms: $8,000
- • Landscaping: $2,000
- • Miscellaneous/contingency: $3,500
Total Estimated Repairs: $77,500
Step 3: Account for Our Costs & Risk
- • Holding costs (6 months): $9,000
- • Closing costs (buying): $3,500
- • Closing costs (reselling): $5,000
- • Real estate agent commission (when we sell): $12,600
- • Our profit margin: $28,000
Total Costs & Profit: $58,100
Step 4: Calculate Our Offer
ARV: $210,000
Minus Repairs: -$77,500
Minus Costs/Profit: -$58,100
Our Offer: $74,400
We rounded down to $74,000 for a clean number
This calculation method ensures we can purchase the property, complete all necessary repairs to a high standard, cover our business costs, and make a reasonable profit while providing the seller with a fair, immediate cash offer.
Working With The Seller
The home still had quite a bit of stuff from the deceased relative. We presented our offer of $74,000 and let the homeowner know they could leave whatever they didn't want behind. We would take care of it. They appreciated several key aspects of our approach:
- The complete transparency in how we arrived at our offer price
- Our ability to close on the timeline they preferred (they wanted to have time to get some things moved from the house)
- No repair contingencies—we were buying truly as-is
- We covered closing costs
- No inspection period that could delay or potentially kill the deal
- Certainty of closing (cash purchase, no financing contingencies)
They thought carefully about the offer and accepted it the next day. We were able to send out for digital signatures, which the seller liked for its convenience and speed.
Transaction Timeline
Our Renovation Process
Once we took ownership, we immediately began the transformation. Here's how we are approaching each major component of the renovation:
- Got started on rebuilding the electric service with new exterior panel
- Hydraulically lift and level the foundation back to within 1/4 inch of level
- Trashout and Demo of bathrooms and kitchen
- Replacing roof
- Rewiring and adding GFCI outlets where necessary
- Patching up walls and ceilings
- Installing doors, new baseboards and door trim
- Painting inside and out
- Redesigning the primary bath to make way for a large walk-in shower and double vanity
- Installing tubs and tiling showers and bathroom floors
- Install kitchen and bath cabinets
- Installing new countertops
- Installing new light fixtures
- Refinishing wood floors
- Landscaping and curb appeal enhancements
Have a Similar Property?
If you have a house, whether inherited or not, with foundation issues, outdated systems, water damage, or major repairs needed, we can help. We've successfully purchased and renovated over 600 properties in San Antonio since 2005.
Get your free, no-obligation cash offer today. We'll explain exactly how we calculate our offer and answer all your questions with complete transparency.