My Manchester, NH 4 Unit renovation

[Joshua Tessier]

I recently purchased a 4 unit off market building for $231,000. It was originally listed on the MLS. The numbers in my eyes weren't terrible so I requested a showing. The realtor wasn't very helpful and the seller wouldn't budge on numbers. I found the seller info and reached out directly with no response. A few months go buy and I reach out to the realtor again. The realtor says I can go look again but doesn't show up to show it. I knock doors and get a pissed off tenant who's sick of people coming to look. He calls the landlord to flip on him. When the landlord returned the call I asked to speak with him and got his number.

Long story short realtors out price comes down a small amount and we get a purchase and sales and our first appraisal. The property is in rough condition and comes in below average condition so conventional financing is off the table. I’m struggling to see how to purchase as a cash deal with renovation isn’t on the table for me. I check hard money options but with the added costs the number don’t work. 

I talked to a friend who recommends a different mortgage broker who says he might help. After a few conversations we agree to do another appraisal this time no condition was listed, appraiser says bank can make the call. That ended up getting conventional financing back on the table and the deal closes at $231,000 with 20% down. 

Upon closing and the first month one unit is empty and while I did get security deposits and remaining rent I notified the tenants the rents were going up and of course 1st month no one pays rent. Demand for rent and evictions are handed out!  One tenant moved out with no issues  2nd tenant says she’s moving in a month and will pay and 3rd decided he’s gonna push it and stay without paying a dime but claims he will be out in another week.  I’ll let you know if he’s out this weekend or not!

First round of permits have been granted so gutting has begun!

chimneys are coming out to open the floor plan up!

it took three nights to empty but finally we are down to the wall to wall garage carpet.  We ran out of dumpster space so we’ll have to wait for the next one.  I’m 90 yards worth of dumpster so far and we have a few more to go!

New garage doors are in!  $1400 installed with new tracks spring and hardware.  The guys got them up in one day and scheduled the install two days after we began talk so super fast which was totally worth it!  Now we can secure materials it’s not weather tight but it’s secure!  More progress to come in the next few month but here’s a teaser to start!