10/13/2026
💰 MONEY TALK MONDAY (yes, 1 day late!)
“I BUY PROBLEMS I KNOW HOW TO SOLVE.” 🏚️➡️🏡
Some investors want turnkey properties. Me? I like the ones other people are tired of dealing with.
Troublesome tenants, deferred maintenance, outdated finishes, underperforming rentals, or simply an owner who's ready to wash their hands of a property.
Why? Because I have the knowledge, resources, and workforce to solve those problems.
Between my accounting background, real estate experience, and Redline Redesign, I've learned that some of the best opportunities come from seeing potential where someone else sees a headache.
And this property right here in Escanaba is a perfect example.
I purchased this triplex on October 24, 2023, for $125,000.
The original appraisal came back at $137,000.
So right out of the gate, I purchased it for $12,000 less than its appraised value.
But here's something important about financing: Just because a property appraises for more than you're paying doesn't necessarily mean the bank will let you use that difference toward your down payment.
My lender required 20% down based on the purchase price, which meant $25,000 out of pocket, plus closing costs. Now there are creative ways to come up with a down payment through a deal structure, but more on that later.
And that's okay. Sometimes putting money down is simply part of getting the deal done.
But I wasn't buying this property for what it was. I was buying it for what I knew I could turn it into.
Take a look at that smaller building on the left side of the photos.
I was told it needed to be demolished.
I saw a future rental unit.
Instead of tearing it down, I turned it into a one-bedroom loft-style home, taking the property from Triplex to a Quadplex.
We also remodeled all the existing units, replaced broken windows, repaired and painted railings, installed exterior doors, fixed siding and fascia, removed the fence, and cleaned up the property.
By January 2024, the work was completed.
Here's what the numbers looked like:
🏠 Purchase price: $125,000
🔨 Remodeling and improvements: $80,000
💰 Total purchase and improvements: $205,000
And after the improvements and increased rental income?
NEW APPRAISAL: $242,000!
That's an increase of $105,000 over the original appraisal, and $37,000 more than I had into the purchase and improvements, before closing costs, financing, and other expenses.
Now, that $37,000 isn't cash profit sitting in my bank account. It's the difference between the new appraised value and my project costs.
And here's where my accountant brain really kicks in...
It's not just about buying a property at a good price.
It's about understanding how to put your money back to work.
Once the property was renovated, rented, and stabilized, I worked with my lender to refinance it based on its NEW appraised value rather than the original purchase price.
My lender allowed an 80% loan-to-value refinance.
💰 New appraised value: $242,000
💰 80% loan-to-value: $193,600
That new loan paid off the original mortgage and allowed me to recover invested capital.
And here's something many people don't realize:
Money you receive through a cash-out refinance generally isn't taxable income.
Why? Because it's borrowed money secured by the property's equity, not profit from selling the property.
Of course, it's not free money. The debt still has to be paid, and the rental income needs to support the mortgage, operating expenses, maintenance, and vacancies.
But here's the part I love...
I KEPT THE PROPERTY.
I had four income-producing rental units, a substantially improved property, and capital available to invest again.
And that's exactly what I did.
I used the money I recovered to purchase my next investment property.
That's the philosophy behind Redline Redesign & Rentals:
RENOVATE. RENT. REINVEST.
Another thing I've learned along the way is how important lender relationships are.
Every bank has different lending programs, underwriting requirements, loan limits, and refinance rules. Some lenders require you to own a property for a certain period before they'll consider a cash-out refinance.
It's easy to get comfortable working with one bank, but building relationships with multiple lenders who know your business and trust your track record is important as your portfolio grows.
I'm not against putting 20% down. But I am always thinking about how efficiently I'm using my capital.
If I can improve a property, build equity, and responsibly recover some of that money to use again, I can continue growing without having to sell the investments I've already worked to improve.
That's the long game.
Not every property is a good investment. Not every renovation creates the value you expect. And refinancing isn't guaranteed.
But that's why I love running the numbers, finding the opportunities, and putting a plan together.
I don't just buy properties hoping the market makes me money. I look for opportunities where my experience, resources, and workforce can CREATE value.
Sometimes the value in a property isn't what it is today.
It's what you have the knowledge, resources, and ability to turn it into.
💰 Real Numbers. Real Experience. Real Talk.
Trish Kidd – Realtor & Investor
📞 (906) 399-2852
📧 [email protected]
*Money Talk Monday is general educational information. Investment costs exclude certain transaction and financing expenses. Appraisals, financing terms, and tax treatment vary.*
