The Modern Day Fred Flintstone of Real Estate Investing

How much would you pay for a house? How about a cave? Sounds absurd, but in this tough economy Alexis Lamoureux found a great investment property and paid only 1 euro for an abandoned cave dwelling.

The Dillemma

Alexis Lamoureux was down on his luck. He recently lost his job and as a result was forced to find somewhere else to work, as well as a new place to live. “It’s very hard to find a job at the moment. Regular apartments are not really affordable, especially for young guys,” said Lamoureux. With high rent costs and no income, Alexis was desperate and decided to revisit a property that once belonged to his Great Aunt to see if he could live there. The property was an abandoned cave that was originally part of an 11th century mining area. These makeshift homes were created out of what remained from the mines which left deep cavities in the face of the sedimentary rock. Over time, those carved out sections became dwellings occupied by troglodytes living in the French countryside mountains in the Loire Valley for many centuries. These kind of homes were fairly common up until the early 20th century, when many fell into disrepair after people moved into modern apartments and houses.

The Appraisal & Purchase

When Lamoureux went to the abandoned cave, he found a mess. There was no electricity, no modern plumbing, no running water, and a ton of litter all over the place. Unfortunately, Lamoureux was in a predicament with very little options. So he approached the government agency which held the deed to the land and found out it was going to be auctioned off the following week. Lamoureux attended the following week's auction and outbid every one with his bid of 1 euro, which the agency was happy to accept just to get the property off their hands.

The Rehab

Although Lamoureux's new home only costs him 1 euro, he would still have to incur renovation costs to make the place inhabitable. “There was no water, there was no sewer, nothing at all,” says Lamoureux. “We had to dig the trench hole along the path, me and my girlfriend, in order to have the water coming, the electricity and the sewer. And then we did the networks inside. We now have two bedrooms with two bathrooms [and] one kitchen, and we just recently got the Internet. It’s just like a modern house now.” Furthermore, the structure would need to be secured to prevent the ceilings from caving in, which make this an even more costly project.

Lamourex was seeking financing in the amount of 25,000 euro to make his new home inhabitable, but his business plan was rejected by every bank he went to. So Lamoureux busted his butt and worked the next 3 years at his father's restaurant in order to save up enough money for the rehab. After he saved up enough money, he was finally able to make his new home livable and move in with his girlfriend.

How He Turned His Cave Into An Investment Opportunity

After purchasing his cave for 1 euro and spending an overall total of 35,000 euro on rehab costs, Alexis has not only built a place to live, he's also found a way to turn his investment into a source of income. While performing the rehab, Lamoureux purposely built in a separate one-bedroom section of the house that's currently being listed on Airbnb (bed & breakfast) for a price of 50 euros/night.

“That’s how we’re going to make profit with the place,” stated Lamoureux. He doesn't think he's going to be the only one doing these type of cave transformations either, “you can expect to get these places for very cheap. Within 10 years, you won’t have any neglected anymore because everyone is starting to renovate them. Some young guys do—there is one young guy in my town doing the same—but mostly it’s investors.” It will be interesting to see how many caves are renovated throughout the area in the near future.  Either way, this is truly a great investor story with a happy ending.

Do you think Alexis is crazy for rehabbing a cave? Let us know what you think about this amazing rehab story.