My long term investment rehab during the COVID crisis

[Tavis Stice]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $60,000

Purchased this 3/1 at the beginning of COVID when there was excessive supply and not many buyers. This was a near total gut rehab that we removed a wall, replaced all underground drain piping, re-raised the living room ceiling, and updated kitchen/bath.

What made you interested in investing in this type of deal?

The home was in close proximity to our house and we were able to pick up for a good price in a neighborhood that has promise in the next 5-10 years.

How did you find this deal and how did you negotiate it?

I found this deal through my rockstar agent Jeff Gregory.

How did you finance this deal?

Commercial loan - 25% down

How did you add value to the deal?

Replaced all kitchen cabinets with an improved layout.
Complete renovation of the bathroom with woodgrain tile flooring.
Replaced all windows in the home for improved design and functionality.
Replaced all septic lines
Removed wall between kitchen and living room to add space
Supplemented attic insulation
Updated electrical breaker panel and power meter
upgraded all house wiring

What was the outcome?

Increased the value of the home that produced an appraised value of $160,000 for the cash-out refi. Estimated current value in the summer of 2022 is $180,000. Renting the home for $1,800/mo.

Lessons learned? Challenges?

Performing the rehab by myself may be rewarding but I need to hire a crew in the future to reduce holding and opportunity cost that occurs with long duration rehabs.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Absolutely! A shout to my rock star real estate agent Jeff Gregory from Realty Executives Success in Shorewood, Ill.