This is a long story but I am going to shorten it and let the pictures speak. Bought this duplex converted to single family home in foreclosure at $60k in South City of ST Louis. Property had black mold in it and that led to a process of gutting the building down to the floor joists. Posted about this on BP and at the end of show 354 @Brandon Turner gave me a shoutout about it! Took about a month to gutted the building all down and then it sat while I was finishing up the refinance process on two of my rentals which took from October 2019 until late April 2020. Back in Feb 2020 I found an architecture that drafted up the plans for the new layout; and shortly after; met a mortgage broker at an investor event that was looking to fund new projects and we connected and two weeks later all the loan programs were shut down as COVID-19 made its entrance. I still pressed on and got the plans done and started on replacing the roof and this is now April 2020. After that I was at a stand still as no banks were giving construction loans out and I was still waiting on the drawings to be completed and city approved. Aug 2020 I received the drawings and at the end of Sept the local banks started to lend money again and I re-connected with the mortgage broker I met at the investor meet up before COVID shutdown. He Connected me with a local bank that took the plans and based those with comps and they gave an ARV of $265,000 and was able to loan me $170,000 which was is 70% of the ARV. Now $50k of that went to pay off the mortgage so the bank can be the first lien holder and $120,000 was for the construction but I anticipated I was going to be around $140-$150k so I was prepare to put in that difference. Construction started after Thanksgiving 2020 and first day the framer ran off with my $3500 deposit. The framer was the only contractor I never worked with but all the others ( HVAC< Roof, Electrial, Plumbing, Masonry, etc) I been working with for years so my Masonry recommended a framer and we where back up and rolling by second week of December. There where a few unknowns that ate into the potential profit. Lumber cost triple my anticipated budget as I had to reframe a whole house, the plumbing line that runs from the building to the city line had to be replace so I had to dig up the back yard and the masonry cost double as the building needed to be more structurally sound. At this point I was only concern with breaking even as I focus more on the experience I was going to get from this especially this not being your typical first flip where you literally rebuilt a home. During the process I got my real estate license so I will be the listing agent to sell this property that will go live on July 1st. All in all my confidence level as a rehabber, General Contractor and Investor is stronger as I was able to deliver and the bank was impress with what I have done; they guaranteed approval on my next project once the building has sold which I already bought the next property which I found on FB marketplace. So to be able to finally have a relationship with a bank and their confidence in me not only as a landlord but as a rehabber is priceless.. also the framer finally paid my money back as his name was circulating around the community as a bad contractor and he could not get any work so he decided to rectify things with investors and workers he ripped off.

Andre Taylor

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St Louis 2yr SFH Rehab Completed!!!

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