Karen Rothermich Rehab Deal

 

Karen Rothermich Rehab Deal

The Way Investments - Karestone LLC in Kansas City, MO

We found this deal on the Heartland Multiple Listing Service. It’s a small house inside of the small town of Trimble, Missouri which is located just north of the Kansas City Metropolitan Area and is considered a distant suburb/semi-rural area. We purchased the property for $53K and got a loan for $70K our lender only wanted us to spend $17K to rehab. Since this was our first flip, I suppose they were being conservative and wanted to check us out. We used the Home Depot commercial credit card for supplies. Our general contractor would text me, and I would approve purchases directly to this account. This allowed us to have 0% interest in many of the supplies. We put in the remaining funds from our personal account, which only amounted to $8K. The house was built in 1923. 2 bedrooms and a bath were added in 1963. Beautiful hardwood floors were under the nasty, stinky, pet-stained mauve carpet. We gutted the original bedroom and removed all of the carpets. We sanded and re-stained the floors and they turned out beautiful! The kitchen could not be saved. We gutted it, walled off the door to the HVAC system and moved the door to a better location. This allowed for more cabinets, and a refrigerator. It did not have space for one previously. When we gutted the kitchen, we discovered massive water damage to the flooring. We installed 12x24\" beautiful marble-looking tile. There was a small linen closet outside of the bathroom, we utilized the space to expand the tiny bathroom. We figured since this was the only bathroom, we needed to make it nice! This home netted us $24K in income. Not bad for our first flip. We paid off the Home Depot card out of the proceeds. We had charged around $10K and paid our contractor about $20K for the total $30K rehab cost. Being conservative, we started small.

Rehab Details

Property City: Trimble
Property State: MO
Purchase Price: $53,000
Repair Costs $30,000
Sale Price: $118,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

Oh my gosh! Where do I start? We never would have even considered this deal without all the resources from FortuneBuilders! We used the deal analyzer to do preliminary costs. We took so much of the information from the videos to synthesize how to build our team and found a wonderful contractor who didn\'t charge us out the wah-hoo! We used the Business Credibility Marketing package to submit to our hard money lender, we continued to watch all the videos and used the marketing materials and design features to design the interior. The results were gorgeous for a tiny home in rural America. The home sold and closed quickly because of FortuneBuilders. Thank you!




Before & After Photos