Complete rehab of single family home

[Kristi Kandel]

Investment Info:

Single-family residence buy & hold investment in Columbus.

Purchase price: $43,000
Cash invested: $34,000

Single family home started as a 3/1.5 converted to 3/2. All utilities were disconnected and meters removed. New water main required from the street. All new utilities to the meters, meters set and all new plumbing/HVAC/water heater/etc inside. Complete gut with new kitchen and bathroom and added bathtub to 1st floor bath. Purchased the home inside a Roth and renting long-term for approx 8K in profit or 11.5% cash on cash return annually.

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

I wanted to start investing in properties with my Roth and the price point and ARV / LTR rent values made this home a good option for a first flip.

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

It was listed on the MLS and we negotiated them down a little.

How did you finance this deal?

Paid in cash with my Roth.

How did you add value to the deal?

Completely gutted and remodeled the home and all brand new utilities.

What was the outcome?

Selling didn't make the most sense after listing it for a few months so I changed the strategy to a LTR rental and hold. Since the property is in my Roth there won't be capital gains tax.

Lessons learned? Challenges?

If you're going to do a full gut and remodel across the country have your team lined up first and walk the property prior to purchasing. My 1st contractor wasted 6 weeks doing almost no work which left me searching for anyone who could show up and do the work. So lots of lessons learned but it turned out well in the end.

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

N/A