All Forum Posts by: 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.

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?

Buying a tax sales are fairly easy and it was a good deal.

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

This was actually a tax sale property that I bought that happened to be my best friends house from high school.

How did you finance this deal?

I purchased this and went through the rehab with my own cash.

What was the outcome?

This was an interesting rehab. The house hadn't been lived in for about 9 years so there was no utilities there and we started this rehab in October and then winter came and we were working in a house with no electricity and no HVAC when it was literally 10 degrees outside. We moved onto a different property that had power and HVAC and fished that one and came back and finished this deal once the temps were above freezing. It's been rented now since September 2018 with a great tenant.

Lessons learned? Challenges?

Don't start a rehab project

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

I did work with Michelle Bellman construction to help get me over the finish line in the end and finish out with my HVAC needs.

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?

Buying a tax sales are fairly easy and it was a good deal.

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

This was actually a tax sale property that I bought that happened to be my best friends house from high school.

How did you finance this deal?

I purchased this and went through the rehab with my own cash.

What was the outcome?

This was an interesting rehab. The house hadn't been lived in for about 9 years so there was no utilities there and we started this rehab in October and then winter came and we were working in a house with no electricity and no HVAC when it was literally 10 degrees outside. We moved onto a different property that had power and HVAC and fished that one and came back and finished this deal once the temps were above freezing. It's been rented now since September 2018 with a great tenant.

Lessons learned? Challenges?

Don't start a rehab project

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

I did work with Michelle Bellman construction to help get me over the finish line in the end and finish out with my HVAC needs.

Brian by registered I'm assuming meaning your LLC is a Missouri LLC? I've never bought a KS property however I'm fairly certain that you don't need to do anything in KS to but a property there if you are legal in Missouri. I would ask your title company however to see what they say.

Matthew are you licensed and insured?  How long have you been in business? 

Eric,

I’ve have prettt crappy experiences we contractors myself the last 2 years however I did just use one that works with investors and was prettt good. There was a few challenges as we were dealing with an extremely short time frame and he started with only a weeks notice. Every concern I raised they were right on it and I believe their pricing is fair. The company name is Gains and Bellman  Construction and John Gains is the contact on the construction side. I’ll message you his information. 

Thanks for the heads up and very sorry to this happened to you. 

Simple answer is YES you can get a hard money loan with no current job. I have a Property that I bought at a tax sale last year for $50,000 that I need to put about $60k into that will Sell for $185k when I'm done. I am in the middle of doing 2 complete rehabs from the studs on two other properties that I'm keeping as a rental so I'm drained of cash at the moment. I have spoken to a few HML this will lend with no W2 income. In my case it's more of a cash out / rehab loan. As long as you don't have a criminal record, have a credit score of 600 or greater and no bankruptcy in the last 3 years and can show at least $15k in the bank for 3 months this company will lend to me with interest only payments for 12 months.

Obviously this doesn’t fit you exact scenario however they were confused at first that I already own the property so I know they will do it for purchases as well. GOOD LUCK. 

Tom what areas and what size and kind of properties are you looking for? Send me a private message if you can. 

Thanks,

Michael Bachmann 

I have a question for everyone.  I have a house that has been deconstructed to the studs and there appears to be mold on both sides of parts of the drywall (inside the wall and out).  Does anyone know what is the best way to treat said mold before continuing with a project?