All Forum Posts by: Thomas Doezema

Scott, 

When I bought the house the west foundation wall had collapsed and the house was barely standing. I gutted the house and jacked it up and replaced that wall in the first few months. I hadn’t pulled permits at all. The city condemned the house and shut me down. It took at least 6 months going back and forth with the city before I could get back to work. I was building a different house for my family for income at the time and working other odd jobs to make money, pay bills and buy materials for this rehab. Once I got back to work I still was on and off between other jobs and setting aside money and salvage materials for this house. It was about three years before I was complete and ready to rent. The permitting was definitely a road block and one of the more difficult obstacles. I told the city it was going to be owner occupied and they were rightfully skeptical. They fined me and set up road blocks and problems the whole time and delayed my work a lot. If I hadn’t bought it so cheap and had had a bank loan I probably would have failed. I also didn’t really end up telling the city the extent of the work I planned to do. I said I wouldn’t change thefloor plan just to get them to give me permits without elaborate drawings. I ripped every wall out though. There appeared to be major separation between the main office and the inspectors. The actual inspectors saw my work and loved it. They passed me without questioning the giant discrepancy’s between the permits I pulled and the actual work. Pull minor permits and post them. Cover all your windows and don’t let anyone in. Keep the the premises very clean. Cross your fingers. I will have a builders license before my next rehab. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $4,000
Cash invested: $30,000

Purchased house with foundation wall collapsed. House was condemned. I saved cash from work and rebuilt the entire house. I vaulted the ceilings and replaced all the electrical, plumbing, and mechanical elements. I also resided, and reroofed the house and built a new deck and gazebo on the property.

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

I have the experience to rehab almost any house and I had the time. I wanted to complete a project on my own that had no debt associated with it.

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

Condemned house on the mls. I had a real estate license in Michigan at the time.

How did you finance this deal?

Cash

How did you add value to the deal?

I rebuilt it myself

What was the outcome?

It’s on air bnb doing well

Lessons learned? Challenges?

I might not pick one that was this far gone again. I had no capital and it has turned out to be a great investment though.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $4,000
Cash invested: $30,000

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

Condemned house on the mls

How did you finance this deal?

Cash

How did you add value to the deal?

I rebuilt it myself

What was the outcome?

It’s on air bnb doing well

Lessons learned? Challenges?

I might not pick one that was this far gone again. I had no capital and it has turned out to be a great investment though.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $4,000
Cash invested: $30,000

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

Condemned house on the mls

How did you finance this deal?

Cash

How did you add value to the deal?

I rebuilt it myself

What was the outcome?

It’s on air bnb doing well

Lessons learned? Challenges?

I might not pick one that was this far gone again. I had no capital and it has turned out to be a great investment though.