Independence Missouri 2/1

[Michael Bachmann]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $24,000
Cash invested: $35,000

This property was a total gut and rehab down to the studs ( we even added studs) as this house will built in 1942 with 2x3" something I had never seen before. It was on a crawl space and we moved all of the mechanicals from the kitchen dining room area to underneath the house by digging down about 4' and building a block foundation area just inside the stone foundation and pouring a new floor and adding a sump pump. Now the hot water heater and HVAC are down there and the renter has a storm shelter they can get into just in case a tornado comes. This was a higher end flip with nice hardwoods (we were able to save most of what was there) and them replace the dining and kitchen room areas since a tree had fallen into the house at one point in time while the house was vacant.

You will see this house is really beautiful and its a 2 bed 1 bath with NO garage and rents now for $950 per month.

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

Easy to buy.

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

Bought this at our annual Jackson County tax sale held each August.

How did you finance this deal?

This was bought and rehabbed with my own capital. I just finally pulled money out of this project in March of 2020.

How did you add value to the deal?

Well wasn't hard I wish I could post more pictures. This was a total gut job. Higher end finishes for a rental.

Lessons learned? Challenges?

Don't attempt to start a rehab right before winter sets in when you have not power or HVAC. We were working using friendly neighbors electric and no heat in 10 degree temps outside which meant it was 10 degrees inside.

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

We used Michele Belman Construction to have their people finish the HVAC and drywall work at the end of the project.