Want to invest in real estate? Spend time understanding the details of home repair and construction.

Not long ago, my partners and I purchased this two bed, one bath home in the heart of Linden. This home is one of several we proudly own in Linden, located just northeast of downtown Columbus. Columbus city has a focused effort to invest in this great community with the One Linden plan. https://www.ourlinden.com/the-plan. With the proximity to downtown Columbus and projected growth path, we are bullish on the area even as prices continue to rise.

The house is small at just over 600sqft, not unusual for the Linden community, which is clustered with traditional neighborhoods and still boasts a reasonable average home value under $100,000 We selected this property to renovate and hold in our portfolio for long -term rental. Once the repairs are complete, the home should rent for $700 - $800 a month. This rent translates into an attractive ROI% for our company.

As other real estate does, the return will increase over time, and the tax benefits are a bonus, but the immediate financials were not the first goal of the project. This home has been an excellent way for us to sharpen our rehab skills since the rehab process is similar in all homes. Locations, size and finishes vary but the core parts: Plumbing, electric, HVAC, roof, foundation, doors, windows, and finishes (flooring, paint, etc.) are functional parts of every house, big or small. With our company only a year old, the skill we lack the most is understanding the basic mechanics of home construction. The Linden bungalow has been the perfect Rehab 101 class, allowing us to learn skills that will pay us back 100x in years to come. By selecting a small home with a total cost, including repairs of $28,000, our investment in learning has minimal risk.

This project is real education that is unmatched in any other way. I have absorbed dozens of rehab/investment/flipping books and podcasts, but nothing compares to doing the real thing. Many new real estate investors have visions of fantastic returns and huge paydays while outsourcing all the work and treating the asset as a side gig or hobby - not a strategy for long term success. To be good at something, you must practice and devote your time and energy into a process every day. Long term, self-performing all the rehab on every project is not sustainable and certainly not scaleable, but the learning and education are exactly what you may need as a new investor. It is possible you already know construction and what you lack is lead generation and finding new deals. The same rule should apply: Take the time to get educated about your profession and never stop learning.

All in, the total cost of the project should land at 28k, so even if we make some mistakes in the process, our deal still works on paper. In a couple of months, the home will be completed, rented, and producing cash flow with significant tax savings, but the knowledge will pay us forever.

FAC Asset Management is a local investment company, founded by four best friends. We invest our time, money, and hearts to create first class, economical homes for the community. We are looking for local investors to help make our vision possible. If you want to learn more about our partnership opportunities, please call, text, or email anytime.