$7,000 purchase, now the rehab

[Derrick E.]

Some of you may have read my post and/or watched the video of my $11,000 house. That is all in after all rehabbing. Currently rented out for $500/month. Could have easily gotten $550/month.

Well we are now rehabbing another house. Initial purchase price is also $7,000 (same as the $11,000 house.) I wanted to show some videos of this house as we update and go through the rehab process. Please keep in mind that I am a small timer still starting out. I do most of the work myself and I contract out some of the work through a local handyman that I use. 

I also invest strictly for cash flow and plan to keep my properties for a long long time. 

Anyways. I started on this house this week and here are the videos I made from this week with my phone. Also please remember I am not into film and such, just a guy with a phone who films stuff when I think about it and also have a few minutes to do so.

This house had a tenant in it for $441/month with around 2 months left on the lease when we bought it.

1st Video

2nd Video

[Derrick E.]

@Liz Cole The $11,000 house is in a high crime area and first one I have bought in a location like that. It's been rough but honestly not as bad as I thought. Then again I live here and manage it myself. Definitely wouldn't trust a PM to run it for me.

As for this house that I'm currently working on... It's not a bad area. I'd live on this street (then again I grew up poor so maybe most people wouldn't.) This home is 2-3 blocks from a major hospital and a redevelopment area. It is about 5 blocks from a university. In a few years it could be a very desirable area, just depends on what happens with the redevelopment 2-3 blocks away. 

You are correct that there is little to no equity in these homes, but I don't care as they are so cheap and the cash flow is insane. I also think that at some point (hopefully in my life, but I'm 33) I will see the market turn back around. I think it will happen as mid west cities continue to tear down dilapidated homes, and as homes burn/go empty they just stay that way until torn down. Sooner or later the supply/demand will balance out imo. I plan on leaving my properties to my children some day so I invest strictly for cash flow right now. 

I truly feel blessed to live in an area like I do and have the opportunity to buy homes so cheap. I wouldn't trust a turnkey provider and I am leery of most people when it comes to investing/business anyways. I only do the videos and make the posts as I see a lot of people living in similar markets throughout the Mid West but they aren't taking advantage of these opportunities. 

Hope I answered your questions.