3502 N Guilford Ave, Indianapolis, IN 46205

[Ross Denman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,000
Cash invested: $92,000

This was a highly distressed home with foundation problems, previous fire damage, bullet holes, etc. This is the biggest rehab that I have personally done to date.

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

This was originally going to be a retail flip in one of my favorite neighborhoods in Indianapolis. This was by far the largest rehab that I have personally invested in. Unfortunately, I ended up over budget and decided to refinance and hold it as a rental property.

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

This deal came to me from a wholesaler. I did negotiate a price reduction due to the condition of the property, but it was pretty cheap from the beginning.

How did you finance this deal?

This was originally an all cash deal, but as the budget got tighter, I did have to take a private money loan from another investor in my network to ensure that I was capitalized properly.

How did you add value to the deal?

Addressed the foundation issues.
Gutted the home to the studs, removed some walls to rearrange the flow of the home and give it an open-concept feel.
New subflooring, sheet rock, windows, doors, fixtures, etc.
Upgraded the electrical to a 200 amp service panel and removed the gas utility from the home.
Installed new all-electric HVAC including the first central air installation
Installed an electric insert in the fireplace
New kitchen and bathroom
Moved washer/dryer hook-up to main floor

What was the outcome?

Currently renting to a great tenant who is renewing his lease next month.

Lessons learned? Challenges?

Get good bids on foundation work
Ensure that you have enough capital to complete the project