Eastside Fire Explosion House

[Adam Oldham]

Investment Info:

Single-family residence buy & hold investment in Indianapolis.

Purchase price: $3,500
Cash invested: $96,000

Torn this house down to the bare bones & brought it back to life. This house had significant fire damage after a large gas explosion. The explosion pushed the front & back walls off of the foundation, so the house was very near to collapsing.

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

The low purchase price was attractive, but after we discovered the damage was not as significant as we feared we realized this house would be a home run.

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

Found this city on the MLS, it was listed with Renew Indy.

How did you finance this deal?

We obtained bank financing on this for 80% of the construction costs & brought the remaining downpayment from personal funds.

How did you add value to the deal?

Completed a full scale renovation to the house & really paid attention to the detail to make sure this house was an absolute stunner.

What was the outcome?

Refinanced the property & currently have it is as a short term rental.

Lessons learned? Challenges?

We had to deal with some contractor issues along the way, schedules & deadlines were not met unfortunately. Sloppy work had to be fixed & this added to the stress & time delays of the project. But overall it was a good experience in learning how to work through adversity & make new contractor connections. This was another lesson learned about the importance of strong project management & providing clear expectations. "Inspect What You Expect."