Diary of a Single Family Rehab Project in Plainville, CT

[Michael Noto]

Lately our investing focus has been on purchasing, rehabbing, renting out, and either refinancing or selling multifamily homes in our area. 

It has been a while since we did a single family project, which has largely been a function of the market inventory available that made sense from a numbers perspective.

While as a brokerage we help people purchase investment properties all over the state, our investing business is very local to our base in Plainville, Connecticut and there is typically a lot of competition for good single family flip deals in the towns we typically operate in. We are hoping this can be a solid deal for us, and who knows maybe it will open the door to more single family deals.

Here are the basics:

- Purchase price: $85,000

- Rehab budget: $30,000 (in a future post we will show the detailed draw schedule outlining specifics of the budget)

- Projected ARV: $180-$190k

- Yearly taxes: $3532/yr

The property is a 3 bed, 1.5 bath 1250 sq ft ranch located in Plainville, CT. There is 975 sq ft on the main level and 275 sq ft in the finished basement area.

We purchased this home as an occupied foreclosure in january from an auction website and when we purchased the home was still indeed occupied, more on how that unfolded in the next post. 

To give you a sneak preview of what we saw when we entered the home for the first time here are some before pictures.....

[Michael Noto]

The trash out is now complete and we have started the bathroom renovation and the cleanup of the outside of the property. Later in the project we will do more in depth landscaping, but for now we are just going to get the leaves up that were never cleared from the fall and clean up any random debris left behind by the previous owner.

Below is a breakdown of our budget for this project in draw schedule format. This is the budget we submit to our hard money lender before every project. The money associated with each draws sits in escrow until we request the disbursement for a given draw. 

So for example, when we finish the bathroom we will let our HML know and they will send someone out to inspect that the work was done. Once they confirm the work was completed they disburse the money via ACH into our bank account.