Everything you need to know before you buy with Legacy Invest

We acquire distressed single-family homes, renovate them to a standard finish package built for durability and low maintenance, and sell them to investors. At any time our inventory is a mix of homes in three states. You'll see the status on each listing.

See real examples in Our work, including the full scope of work documents buyers received.

Here are four recent St. Louis projects, taken from the scope of work each buyer received. Drag the slider on each photo to compare the house as we bought it with the finished home.

Four recent projects

What these renovations had in common

• HVAC 10 years or older gets replaced. Any furnace or condenser that is 10 years old or older, or not working, is replaced with new equipment.
• Water heaters 10 years or older get replaced. Any water heater that is 10 years old or older, or not working, is replaced with a new unit.
• Bathrooms redone with new tile or surrounds, a refinished or new tub, and new toilets and vanities.
• Safety items: new smoke detectors (and CO detectors where listed), new receptacles, switches and covers.
• Rental-grade finishes: fresh paint, new blinds, light fixtures and door hardware, with refinished hardwoods or new vinyl plank flooring.
• Big-ticket exterior work where needed: three of the four got a new roof, and several got new gutters, windows or siding repairs.
• Licensed trades. Licensed contractors handle all electrical, plumbing and HVAC work.

What's in a scope of work

After you sign a contract, review your preliminary scope of work, like the sample below. It's the plan for exactly what we'll do to the house. When the renovation is finished, you receive a final scope of work like the examples above, with before and after photos of the completed work.

Ages of the water heater, HVAC and other systems are in the third-party home inspection report when you order an inspection at contract.

Every property we acquire, renovate and list is updated to one written standard unless otherwise noted. It sets what gets repaired, what gets replaced, and the finishes, so a house in Memphis and a house in St. Louis come out the same.

Licensed contractors do the electrical, plumbing and HVAC work, and permits are turned in to our project manager. Each house is signed off on a quality control checklist and deep cleaned so it's ready to show to a tenant.

When you reserve a home that is being renovated, you receive a preliminary scope of work. It describes in plain language exactly what we intend to do to the house before it's turned over to you, trade by trade and room by room. It's issued early, before work starts, so you're buying a documented plan rather than a promise.

What we touch on the house

Ten systems are addressed on every full renovation.

1. Roof system. Tear-off to decking, new architectural shingles, underlayment, drip edge and boots.
2. Attic & insulation. Insulation replaced or upgraded, ventilation verified, attic access sealed.
3. Gutters, fascia & soffit. Rotten wood replaced; seamless gutters with downspouts discharged away from the foundation.
4. Siding & exterior paint. Damaged siding replaced, surfaces prepped and painted.
5. Windows & exterior doors. Broken glass and failed sashes replaced; new locksets, weatherstripping and thresholds.
6. HVAC. System evaluated or replaced, ductwork sealed, new thermostat, condenser pad and cage.
7. Electrical. Panel and service inspected, deficiencies corrected, devices and fixtures replaced.
8. Plumbing & water heater. Lines pressure tested, leaks corrected, water heater serviced or replaced.
9. Interior finishes. Drywall repair, full interior paint, new flooring, trim, doors and hardware.
10. Foundation & grading. Structural items addressed, crawlspace cleared with vapor barrier, grading pulled away from the house.

How the work gets done

Our in-house construction division follows the same eight stages on every house. Each stage produces a record (a photo set, a permit, an inspection result or a signed checklist), and those records back the warranties.

1. Condition assessment

   The property is walked and photographed in full. Every deficiency is documented with a dated photo before a dollar is spent.

2. Scope written and priced

   The preliminary scope is produced line by line by trade, priced by our own construction division rather than a third-party bid.

3. Permits pulled

   Permits are pulled in every jurisdiction that requires them. No permit-required work happens without one.

4. Before photos

   A complete before set is filed so the finished condition can be checked against the starting condition.

5. Rehab executed

   Trades are sequenced: demo and trashout, roof and exterior dry-in, mechanical rough-in, drywall, paint, flooring, cabinets and fixtures, punch list.

6. Trade inspections

   Plumbing, electrical, HVAC and building inspections are scheduled and passed where required.

7. Quality control walkthrough

   An internal QC checklist is walked and signed off by construction management before the job is called complete.

8. Documentation and handoff

   After photos are filed, warranties are activated and the property is turned over rent-ready to property management.

Specification by trade

The scope breaks the work into nine sections. Open any section to see the standard we build to, with a labeled drawing of where the work happens on the house.

ARoofing & attic

The roof is settled first, because everything else depends on the house being dry. Every roof is inspected: if it's worn out we tear it off and replace it, and if we estimate it has remaining life we repair it so it's watertight.

Roof covering

Tear off to decking, replace bad sheathing, synthetic underlayment, architectural shingles.

Flashing & boots

New pipe boots, valley and step flashing, drip edge at all eaves and rakes.

Repair alternative

Roofs that we estimate to have remaining life are repaired rather than replaced: damaged shingles, flashing and boots are replaced and any leaks are fixed.

Attic insulation

Replaced or upgraded where needed.

Ventilation

Ridge, static or turbine venting installed if needed and balanced against soffit intake.

Attic access

Hatch or pull-down insulated and weatherstripped.

BExterior envelope

Siding, trim, glazing and gutters are treated as one system: a sealed, painted, water-shedding exterior that won't generate a maintenance call in your first two years.

Siding & trim

Rotted siding, fascia, soffit, corner boards and window trim replaced in kind.

Exterior paint

Wash, scrape, spot-prime bare wood, then a full finish coat on body, trim and doors.

Gutters

Seamless gutters and downspouts with extensions discharging four feet off the foundation.

Windows

Broken glass and failed sashes corrected; every window opens, closes, locks and has a screen.

Exterior doors

Front door replaced or refinished; new deadbolt and knob keyed alike; weatherstrip and threshold.

Porch, steps & rails

Structural repair as needed; handrail installed where required by code.

CHeating & air conditioning

HVAC is evaluated by a licensed technician, not by eye. Systems past economical repair are replaced with a new matched system, and that replacement is what the mechanical warranty attaches to.

System

Evaluated by a licensed contractor; replaced with a new matched system if beyond economical repair.

Ductwork

Inspected and sealed, damaged runs replaced, supply and return in every conditioned room.

Thermostat

New programmable thermostat installed and tested.

Condenser

New level pad and locking condenser cage as a theft deterrent.

Commissioning

Refrigerant charge verified and temperature split documented at startup.

Vent cleaning

Full duct and vent cleaning before turnover.

DPlumbing

Supply and drain systems are tested under pressure and flow, not assumed. Anything that leaks, drains slowly or is made of an obsolete material is corrected before the walls close.

Supply lines

Pressure tested; leaking, corroded or galvanized sections replaced.

Drain, waste & vent

Flow tested and cleared; main line scoped where age or condition warrants.

Water heater

Serviced or replaced; new T&P valve and discharge line; pan and drain where required.

Fixtures

New faucets, supply lines, angle stops, toilets and wax rings throughout.

Exterior

Hose bibs replaced; main shutoff located, tagged and confirmed operable.

Documentation

Drain service completed and logged in the pre-closing file.

EElectrical

Electrical work is performed and inspected by licensed trades. The panel, grounding and life-safety devices are never left to a handyman.

Service & panel

Inspected by a licensed electrician; obsolete, recalled or undersized panels replaced.

Grounding & bonding

Brought to current standard, including water and gas bonding where applicable.

Devices

Outlets and switches replaced; GFCI at kitchen, baths, laundry, garage and exterior.

Fixtures

New interior light fixtures throughout and exterior lighting at every entry.

Life safety

Interconnected smoke detectors in every bedroom and on each level, plus a carbon monoxide detector on every level.

Inspection

Permit pulled and final inspection passed where the jurisdiction requires it.

FInterior finishes

The finish package is standardized across the portfolio: the same paint, flooring and hardware. A repair three years from now is a phone call, not a color-match exercise.

Drywall

Holes, cracks and water-damaged board cut out and replaced; texture matched.

Interior paint

Full two-tone interior (walls, ceilings and trim) in the standard program colors.

Flooring

Luxury vinyl plank in living areas, bedrooms, kitchen, baths and laundry. No carpet is installed.

Trim & doors

Baseboard repaired or replaced; interior doors, casing and hardware as needed.

Window coverings

Two-inch faux wood blinds on every window.

Closets

Shelving and rods reset and secured in every closet.

GKitchen

The kitchen is the biggest driver of how quickly a property leases and what it leases for, so it gets a full finish rather than a touch-up.

Cabinets

Refinished or replaced; every door and drawer aligned, working and fitted with new hardware.

Countertops

Replaced as needed; new backsplash sealed at all wall and sink joints.

Sink & faucet

New sink, faucet, strainer and disposal where present, with new supply lines and stops.

Appliances

Range and range hood per program; refrigerator and dishwasher where specified.

Electrical

GFCI counter receptacles and dedicated appliance circuits verified.

Finish

Flooring run continuous, toe kick finished, cabinets cleaned inside and out.

HBathrooms

Bathrooms are rebuilt to be watertight first and attractive second. Every wet joint is sealed before the finishes go in.

Tub & shower

Surround repaired or replaced, valve serviced, all joints caulked watertight.

Vanity

New vanity, top, faucet and mirror with new supply lines and angle stops.

Toilet

New toilet, seat, supply line and shutoff, set on a new wax ring.

Finish

Moisture-resistant paint, new towel bar and paper holder, GFCI receptacle.

Flooring

Luxury vinyl plank with a sealed perimeter at tub, toilet and vanity.

ISite, safety & turnover

The last two weeks are about handing over a property that is clean, secure and ready for photos: the condition a tenant walks into on move-in day.

Trashout

All interior and exterior debris, abandoned property and construction waste removed.

Landscaping

Overgrowth cut back, limbs cleared off the roof and service lines, beds cleaned and edged.

Grading & drainage

Soil pulled back from the foundation and negative grading corrected.

Fencing & gates

Repaired and made operable where present.

Rekey & secure

All exterior doors rekeyed at completion and a lockbox set for management.

Final clean

Full detail clean including vents, appliances, glass and fixtures.

Room by room

The scope also includes a floor plan of the house with callouts for every room: living areas, kitchen, bedrooms, baths, laundry and hall. Each lists the work landing in that room, from paint and flooring to fixtures, detectors and GFCI outlets.

Warranty and verification

Nothing in the scope is sold on our word alone. Each commitment below is tied to a document that transfers with the property at closing.

Every Legacy Invest property comes with incentives that put money back in your pocket and protect your first year as an owner.

Incentives apply to properties sold by Legacy Invest and are listed in your purchase contract. They don't apply to third-party investor listings, which are sold as-is with no warranty. They're separate from the no-credit policy for closing delays described in the buying process.

Here is how a purchase moves, based on our standard purchase contract. The contract you sign controls, so read it in full.

1. Browse and run the numbers

   Every listing on our marketplace has an editable pro forma. Change the down payment, rate, vacancy and reserves to match how you invest.

2. Reserve the property

   Submit a reservation request from the listing. A reservation is not final until you receive written confirmation from us.

3. Sign the purchase contract within 2 business days

   We send the contract through PandaDoc for e-signature. If it isn't signed within 2 business days of being sent, it becomes voidable. You can assign the contract to your LLC or corporation.

4. Deposit earnest money within 72 hours

   Earnest money goes to the title company named in the contract. Until it's received, the contract isn't binding and the home stays on the market.

5. Choose how you're paying

   Cash purchases have no financing contingency. Financed purchases are contingent on your loan; if you're denied after acting in good faith, a lender denial letter is required for your earnest money to be returned. Private-money buyers send a pre-qualification letter right away and complete loan documents within 10 days. If you're buying through a 1031 exchange, tell us your sale date and your 45- and 180-day deadlines at this point so we can schedule closing around them.

6. Review the scope of work

   For homes being renovated, you receive a preliminary scope of work after contract signing. Review it within 72 hours and send us any questions.

7. Complete due diligence in 5 business days

   You have 5 business days for inspections. On an already-renovated home, due diligence starts when you sign. On a home being renovated, it starts when we email you that the renovation is complete. We can order a licensed third-party home inspection ($450) and pest inspection ($200) for you, or you can hire your own inspector.

8. Appraisal and loan approval

   You may use any lender. If your lender's appraisal comes in below the price and a rebuttal doesn't fix it, you agree to switch to one of our recommended lenders, and we pay for the new appraisal.

9. Bind insurance

   A landlord policy must be in force at closing, with your lender listed as mortgagee. You can request a quote from our Goosehead agency.

10. Close within 60 days of loan approval

    We close with the title company by warranty deed. Taxes, rents and security deposits are prorated, each side pays its normal closing costs, and on a rented home the leasing fee is reimbursed to the seller. You can do a final walkthrough before closing.

11. Hand off to management

    Sign the management agreement in PandaDoc and you'll receive your Propertyware owner portal login. The property team takes it from there.

Every price and rent on our marketplace is backed by market data, not a guess. Here's how we arrive at the numbers you see on a listing and in its pro forma.

A pro forma is a monthly budget for the property. It starts with rent, subtracts every cost of owning the house, and shows what's left before and after the mortgage. Try it below. The figures are an example, not a listing.

Cash to close here is before our 2% closing cost credit, which lowers what you bring to closing.

Terms you'll see on every listing

Gross rent

The monthly rent on the lease, or market rent for a vacant home.

Vacancy

An allowance for months the home sits empty between tenants or rent that isn't collected. Often modeled at 5–8% of rent.

Effective income

Gross rent minus vacancy. This is what you realistically collect.

Operating expenses

Taxes, insurance, management and a repairs reserve. The mortgage is not an operating expense.

NOI

Net operating income: effective income minus operating expenses. It measures the property itself, independent of how you finance it.

Cap rate

Annual NOI divided by purchase price. Useful for comparing properties on equal terms, whether you pay cash or finance.

Debt service

Your monthly loan payment of principal and interest.

Cash flow

NOI minus debt service. The money left for you each month.

Cash-on-cash return

Annual cash flow divided by the cash you put in (down payment plus closing costs). It shows what your invested dollars are earning.

Capital expenditures

Big-ticket replacements such as a roof, HVAC or water heater. Our renovations reset many of these, but a long-term owner should still set money aside.

Investment property loans work differently from buying a home to live in. Down payments are larger, rates are usually a little higher, and lenders look closely at the property's rent. Here are the common routes our buyers take.

• Get pre-approved before you reserve. Knowing your rate and required reserves lets you plug real numbers into the pro forma.
• Tell your lender it's a renovated, tenant-ready rental. The appraisal is ordered after renovations are complete so the value reflects the finished home.
• Buying in an LLC? Most conventional loans require buying in your personal name. DSCR and portfolio loans often allow an LLC. Talk to your attorney and CPA before you choose.
• Ask us about lending solutions. We work with lenders who know our properties and our markets, including buyers who live out of state.

Loan programs, rates and down payment requirements change often. Confirm current terms with your lender.

A 1031 exchange lets you sell an investment property and defer capital gains tax by reinvesting the proceeds into another investment property. Turnkey rentals are a common replacement property because they're ready to produce income and can close on a predictable schedule.

• Use a qualified intermediary (QI). Sale proceeds must go to the QI, not to you. Set up the QI before your sale closes.
• 45 days to identify. Replacement properties must be identified in writing within 45 days of selling the old property.
• 180 days to close. The purchase must close within 180 days of the sale (or by your tax filing deadline, if that comes first).
• Match or exceed to defer fully. To defer all the tax, buy property of equal or greater value and reinvest all the net proceeds. Cash you keep, or debt you don't replace, is "boot" and is taxable.
• Spread it across several homes. You can exchange one larger property into several turnkey rentals, which diversifies across tenants and neighborhoods.

A standard homeowners policy is written for a home you live in. A rental needs a landlord policy, often called a dwelling fire policy (DP-3 is the most complete form). It covers the structure, your liability as an owner, and lost rent while the home is repaired after a covered loss.

Through our Goosehead Insurance agency we shop landlord coverage across multiple carriers, and we already know the properties and their updates, so we can help you choose adequate coverage. Our pro forma estimates insurance at 1% of the purchase price. Get a real quote before closing to replace that estimate.

Most of our buyers don't live near their properties, so professional management is what makes the investment passive. Legacy Invest manages every home we sell in both Memphis and St. Louis, handling leasing, rent collection, maintenance and owner statements.

• You pay: property taxes, insurance and repairs. You keep an active landlord policy and give the manager the policy details.
• Tenants pay: all utilities, pest control and HVAC filter changes under our lease. Approved pets carry a $300 non-refundable fee and $25 monthly pet rent per pet.
• Tenant fees stay with management: late fees, application fees and NSF fees go to the manager, not the owner.

Optional protection services (St. Louis)

The marketplace pro forma models management at 10% of rent, which matches St. Louis and is slightly conservative for Memphis. Leasing fees add one month's rent each time a new tenant is placed, so factor turnover into your vacancy assumption.

Every part of buying and owning with us runs through two platforms. You'll use PandaDoc to review and sign your documents, and Propertyware to see how your property is performing after closing.

Both cities offer purchase prices well below the national median alongside steady rental demand, which is why rents can support a positive cash flow in markets like these. Each has its own rules and quirks.

Local ordinances change. We keep up with the requirements that apply to our properties, and you should confirm anything that affects your decision.

Tick these off as you go. The checklist is for your own reference and resets when you reload the page.

• Keep a cash reserve. Hold a few months of expenses per property for repairs, turnover and vacancy so a surprise never becomes a problem.
• Read your monthly statements. Log in to your Propertyware owner portal and compare actual rent and expenses to the pro forma. Questions are easier to resolve early.
• Watch your tax bill and insurance renewal. Your lender may escrow them, but reassessments and premium changes still affect your cash flow.
• Take depreciation. Residential rental buildings are generally depreciated over 27.5 years, which can offset much of your rental income on paper. Your CPA will set this up.
• Keep your records. Save your closing statement, scope of work, inspection and insurance policy together. You'll need them at tax time and when you sell or exchange.
• Plan the next one. Many of our investors buy again once their first property is stable. We'll help you look at refinancing, equity and your next purchase.

These are sample copies of the documents you'll see as a buyer and owner. They're watermarked samples; the versions you sign are prepared for your property.