All Forum Posts by: Tavis Stice

Thanks Scott!  I think there’s definitely something for us to look at using a maid’s service.  I agree that we need to make sure they are not distracting 🤣. We’ll call around to get some quotes to see how this can work. 

Thanks Brandon!  This is excellent!  We will use a bit of this to add to the lease agreement and add as an addendum to existing leases for existing roommates.  This should help a lot to build some structure into his living arrangements. 

Needing a little guidance.  I partnered with my son to purchase a house hack for my son while he attends college.  We found a good house with 5 bedrooms about 10 minutes away from his university. Financially, it’s working out great as he has 3 roommates that cover the mortgage and repairs with hopes of picking up a 4th roommate.  The challenge that we are running into is general house chores and cleanliness.  Probably should have foreseen this with all the college boys.  Has anyone successfully managed this?  Is there a template of house rules I could borrow?  How can we hold them to their responsibilities?  Thanks to all those that can reply 🙏

Investment Info:

Single-family residence buy & hold investment in Joliet.

Purchase price: $75,000
Cash invested: $40,000
Sale price: $175,000

Property was purchased as a short-sale and extensively rehabed prior to renting. Quite the learning experience with this one as the home was built in 1915 and this was my first investment property. Ended up selling the home to take advantage of the selling market and to hedge the grim rental market at the time

Investment Info:

Single-family residence buy & hold investment in Joliet.

Purchase price: $75,000
Cash invested: $40,000
Sale price: $175,000

Property was purchased as a short-sale and extensively rehabed prior to renting. Quite the learning experience with this one as the home was built in 1915 and there were multiple generations of poor renovation attempts. Rehab included: new roof, basement drain tiles/sump pump, bathroom renovation, kitchen renovation, upgraded lighting in kitchen&living room, new smoke detectors connected to power, ran electrical to detached garage, paved driveway, painted throughout, re-finished hardwood floors

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $60,000

Purchased this 3/1 at the beginning of COVID when there was excessive supply and not many buyers. This was a near total gut rehab that we removed a wall, replaced all underground drain piping, re-raised the living room ceiling, and updated kitchen/bath.

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

The home was in close proximity to our house and we were able to pick up for a good price in a neighborhood that has promise in the next 5-10 years.

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

I found this deal through my rockstar agent Jeff Gregory.

How did you finance this deal?

Commercial loan - 25% down

How did you add value to the deal?

Replaced all kitchen cabinets with an improved layout.
Complete renovation of the bathroom with woodgrain tile flooring.
Replaced all windows in the home for improved design and functionality.
Replaced all septic lines
Removed wall between kitchen and living room to add space
Supplemented attic insulation
Updated electrical breaker panel and power meter
upgraded all house wiring

What was the outcome?

Increased the value of the home that produced an appraised value of $160,000 for the cash-out refi. Estimated current value in the summer of 2022 is $180,000. Renting the home for $1,800/mo.

Lessons learned? Challenges?

Performing the rehab by myself may be rewarding but I need to hire a crew in the future to reduce holding and opportunity cost that occurs with long duration rehabs.

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

Absolutely! A shout to my rock star real estate agent Jeff Gregory from Realty Executives Success in Shorewood, Ill.

Thank you!  This one gets $1,300/month in rent.  My all in cash was $25,000 ($19,000 down / $6,000 rehab)

Investment Info:

Single-family residence buy & hold investment in Joliet.

Purchase price: $78,000
Cash invested: $25,000

3 bedroom/1 bathroom SFH in South Joliet

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

I needed a break from extensive renovation. I refined what I was looking for in a deal. I wanted something that needed work or was undesirable but did not require extensive work.

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

Through the MLS via my real estate agent

How did you finance this deal?

25% down commercial loan

How did you add value to the deal?

The property had termites. I hired terminex to take care of the termites and I performed the repairs to the affected wall studs. Gutted the bathroom and updated with new products. There was a mechanical room that was right by the living room and was fairly loud. The furnace was in fair condition and did not require replacement so I came up with an innovative solution. I designed and built an insulated Murphy door bookshelf to hide the mechanical room.

What was the outcome?

30 days spent renovating and rented right away

Lessons learned? Challenges?

Learned that it pays to invest in the appropriate tooling. Purchased a portable air compressor and nail gun to make trimming the house a breeze.
Having to deal with the termites seemed a little daunting at first but wasn't so bad.

Investment Info:

Single-family residence buy & hold investment in Joliet.

Purchase price: $75,000
Cash invested: $40,000

Property was purchased as a short-sale and extensively rehabed prior to renting. Quite the learning experience with this one as the home was built in 1915 and there were multiple generations of poor renovation attempts.

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

Wanted to break into the rental market with a property that I could make the numbers work

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

Through my real estate agent. Was not much room for negotiating as this was a short sale. At the time (2016), properties were still easy to come by. The home was listed for $78,000 and I offered $75,000.

How did you finance this deal?

25% down commercial loan

How did you add value to the deal?

Performed extensive rehab to the home. My wife and I put a lot of sweat equity into the work. Portions were farmed out for the roofing, electrical, basement drainage system, and driveway.

Rehab included: new roof, basement drain tiles/sump pump, bathroom renovation, kitchen renovation, upgraded lighting in kitchen&living room, new smoke detectors connected to power, ran electrical to detached garage, paved driveway, painted throughout, re-finished hardwood floors

What was the outcome?

Added $75,000 in value to the property

Rented the house for $1,600/month

Lessons learned? Challenges?

Lessons Learned:
Don't hesitate to hire for jobs that you're uncomfortable with. Attempting the work and later realizing you need to hire wastes a lot of time and money.
Time - time wasted dragging on a project that is being performed improperly and that the contractor has to undo
Money - money wasted in extending rehab duration. Money wasted in purchasing tooling and material that is unnecessary. Money wasted now paying a contractor extra to correct your work.

I'm in.  Thanks for setting up a meet-up!