investment rental #2: first easy 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.
