Want Cashflow? Buy Cash and Rehab!

[John Carpino]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $21,000
Cash invested: $28,000

This was a gut rehab in Kalamazoo, MI. This made me an enormous cashflow since there was initially nor mortgage (about 900/month). Refinanced in 2020 for 74K Cash Out. Current cashflow is about $500.

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

This was a great cashflow opportunity

How did you finance this deal?

CASH

How did you add value to the deal?

Gut rehab

What was the outcome?

This property cashflowed about 900 per month out of the gate, then was refinanced for 74K Cash Out. My ROI was over 100%, and the property still cashflows about $500/month.

Lessons learned? Challenges?

Having a great handyman at a good price is key, but just because someone works for a good price, it might not be worth it if you are doing an extensive remodel. My handyman took many months to do the work. I might have paid double for a contractor, but I could have started receiving rent months quicker. Takeaway: Use your handymen for quick fixes and 1 week projects, but hire a contractor for extensive work, or better yet hire a great management team that will do it for you!