8612 S. Kentucky Ave, Oklahoma City, OK 73159

8612 S. Kentucky Ave, Oklahoma City, OK 73159

January – February 2022

1907 Investment Group

One of our investors approached us with a challenge: rehabbing a property he recently acquired on the MLS, raising its value and potential cap rate.

The Goal

This investor’s objective is to acquire and hold rather than sell, which means, after the project is over, the house will be listed for rent.

8612 Kenutcky Kitchen

3 Beds

1.5 Baths

1,149 Square Feet

3 Beds

1.5 Baths

1,149 Square Feet

Offer

A Realtor we work closely with made this deal possible. He found the deal for our investor, submitted the offer, and got it closed out. The process took two weeks, from presenting the offer to inspections and finally closing.

Negotiations

Before placing a bid, the Realtor had Brian, our Chief Officer, run the numbers to assure our investor would not overpay for the house. Brian conducted rent comparisons and budgeted for the cost of restoration to arrive at the offer price. This part is crucial because you, as investors, make your money at acquisition.

Financing

Everything purchased was used with cash.

Refinancing & The Future

Since our investor used cash for this purchase, the owner will not need to refinance. He will immediately start cash flowing from day one.

With this purchase being a long-term investment, the investor will be looking to profit from the property’s potential appreciation. On average, Oklahoma has a 3% appreciation yearly. As for his yearly return, he will be looking at a 7% return.

Scope Of The Work

This house was in terrible condition. We would classify this house as a complete remodel

  • Removal of all carpets in all three bedrooms, including living room and hallway.
  • Replacing all bedroom carpet with new carpet.
  • Every room in the house was repainted, including the living room, dining room, kitchen, and bathrooms.
  • Replacing all the carpet in the living room and dining room with tile.
  • Rewiring all the electrical work in the house.
  • The flooring in the kitchen dining room was replaced.
  • New appliances in the kitchen.
  • Both bathrooms were completely remodeled, including floor, walls, vanity, and showers
  • Patio wood flooring removed.

The exterior of the house was in excellent condition. No work was done to it.