No. 37 – Buying Houses on the Same Street!

How Did We Find The Property?

We have been doing work for some out-of-town investors and one of them asked us if we were interested in buying this property. This is very close to our other Illinois house, so we were very interested. We inspected the house for out-of-town investors and actually helped the tenant move out. Eventually, the owners offered us this property with terms so we jumped on it.

How Did We Fund The Property?

The sellers agreed to sell us this property on terms. We had to pay $2,000 down, and $5,000 per month for seven months. This is something that we didn’t know how we would come up with the payment, but our goal is always to get into the property and then figure out how to hold onto it. After less than one year we will have a brand new house, completely paid off. We do not anticipate this property appraising high enough to put financing on it, so all of our cash will stay in the property for now.

How Did We Fix The Property?

This property needed all the trash hauled, all the old carpet removed, completely painted the walls, ceiling, cabinets, trim, etc. We put in new counters, stainless steel appliances, lights, ceiling fans, etc, the whole 9 yards. In addition, once we started doing some repairs in the kitchen, we found out the property had a decent amount of termite damage, so this caused us to do even more renovation than we expected. In addition, we ended up pulling down a lot of paneling within the house, fixing the walls, and redoing the flooring, all of which lead to a more expensive rehab than the other Illinois property. Overall the total cost for each Illinois property was about the same, but this property has newer appliances, flooring, a roof, and more square feet than the other property.