A Learning-Focused Renovation on E Locust St

[Julie Muse]

Investment Info:

Single-family residence renovation investment.

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

Contributors:
Peter Vekselman

Partner Driven partnered with Russell Walker to take on a renovation project in Kankakee, Illinois. The property was purchased for $40,000 and improved with $40,000 in updates before selling for $75,000. While this deal sold below the total investment, it became a valuable experience in understanding market shifts, renovation planning, and cost management.

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

The property had potential due to its structure and location. With the right upgrades, it seemed like a strong candidate for a profitable resale. The margins initially looked workable, and the local buyer demand suggested that a well-executed renovation could create a solid return, making it a reasonable project to pursue.

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

Russell sourced the deal through direct outreach and secured it at a price that aligned with its condition at the time. The seller wanted a straightforward, as-is transaction. The negotiation was quick, and the terms allowed the project to move forward without delay, giving room to focus on the renovation plan.

How did you finance this deal?

Partner Driven funded 100% of the project, including the $40,000 purchase and the $40,000 rehab budget. This full-capital support allowed Russell to concentrate entirely on managing the renovation without using personal funds. Even though the project did not result in a profit, it remained financially supported from start to finish.

How did you add value to the deal?

The renovation improved the home's condition with updated flooring, interior paint, kitchen and bathroom updates, and repairs needed to make the home functional and appealing. Every improvement was designed to bring the property up to market standards, even though the rising costs and shifting comps ultimately affected the final margin.

What was the outcome?

The property sold for $75,000, resulting in a loss compared to the total investment of $80,000. Although the financial result was not ideal, the project offered insight into cost control, market sensitivity, and the importance of aligning renovation budgets with realistic resale projections.

Lessons learned? Challenges?

This deal reinforced the need to monitor renovation expenses closely, especially in markets where resale values can fluctuate. Unexpected repairs and shifting local comps affected the final numbers. The biggest takeaway was that not every project will be a win, but each one provides valuable experience that strengthens future decision-making and strategy.