When the dust (and mud) settles
Over time, the mud made way to gravel, grass, fences and the whole project begn to take the final form. The driveways were poured, finishing touches were being applied inside and outside, and the challenges of the past were merely that… in the past. What had begun as a small idea during Covid-19 had hit another major milestone, we’d built some of our own inventory. Looking back now writing this, I’m realizing we haven’t taken as much time as we should to appreciate the progress we’ve made (and continue to make). Rich and I generally keep our heads to the ground, finish one successful project and move to the next, often saving the bulk of our attention for the challenges of projects that don’t go so well, or are more difficult to execute. Not enough energy is spent on gratitude and appreciation of the journey we’ve travelled. Perhaps more on that in another series!
We were excited to get landscaping and final touches in. We’d been dealing with mud so long that even we began to worry it would never end. After months of boots caked in blue clay, seeing the first roll of green sod hit the ground felt like a victory lap. We took a little time to put some nice finishing touches on the buildings. With clay soil, water is always an issue. We installed full gutter systems with tight-lines terminating into the newly created drainage ditches. Our earthworks subcontractor had skillfully molded the once muddy mess into a beautiful road, complete with drainage ditches, culverts, and gravel. We had topsoil delivered and installed sod, patios and fencing. Second street is standing tall.
The Transformation
When complete we had three great properties. Two identical duplexes and a single family home. The single family home had been marketed on the MLS through the late stages of completion and was under contract. The buyer had picked some finishes and we were moving smoothly to the closing table. Rich had begun marketing his duplex on Zillow and had begun getting interest. My wife Crystal and I were on a planned vacation, and planned to start marketing ours when we returned.
We received great feedback on the properties overall. Most were impressed with the higher end finishes (quartz counter tops throughout, LVP flooring, stainless appliances, etc.). Some even commented that they were the “Nice apartments that Rockford needed.” The two car garages were also a big hit.
Within a month, all four units were rented and have remained rented consistently to this day.
Addressing the impact
There were skeptics from day one, heck, even we question ourselves sometimes. Real Estate investing is simple, but not always easy. Day one we started getting neighbors complaining about the burned home (that had been there for quite some time, we were just a fresh set of ears to listen to the complaints). Some didn’t like the prospects of duplexes being built, or that someone was “ruining the small town feel of Rockford.” There was even concern how the big new buildings would look for the neighbors.
While change is hard, replacing a high-risk liability with five new households is the kind of ‘change’ that keeps small towns like Rockford sustainable and vibrant.
We created some great quality housing, we improved property values, we removed an old burned building, and added some sewer and water infrastructure.
Thinking Small
At the end of the day, we questioned ourselves for not building a third duplex. The venture was profitable. We created two great rental properties and sold the spec home for a profit. We were able to create over $200,000 in equity in each duplex as they appraised similar to (but slightly below) the newer duplexes in the Spokane Valley, with similar rents. In reflection a third property might have been a better use of our efforts, but in the end, we have no regrets.
We love our properties over there and enjoy being part of the Rockford community. We’re happy with the outcome. If you have a ‘burn pile’ property in your neighborhood or you’re looking for an investment team that isn’t afraid to get their hands dirty (literally), we’re ready for the next one. Let’s connect.
