1st time flipper in the Greater Boston Area (Watertown East End). Still going through the full gut renovation process and asking for some thoughts on the overall numbers and the design.

Basic info:

- Timeline: Jan 2022 (Closing) -> Feb/March (Architectural planning) -> April (Framing/dormer) -> May (HVAC/plumbing/electricity) and now working on insulation and drywall. The windows took a while to arrive and impacted the timeline.

- Costs: 910k acquisition (20% down with 3.375% interest) and ~500k total construction cost

- Backend cost upon completion: ~950k (or ~$4500/month as rental) for the upper floor unit (3b3b with deck and porch) and ~700k (~$34000/month as rental) for the lower floor unit (3b2b with porch).

- Parking: 1 garage spot (compact) and 3 off-street in the backyard. Lot is ~5000 sq ft with a stone patio (needs update).

- Listing: link

Overall, my plan is to owner-occupy the upper floor unit with my wife and rent out the 1st floor unit. The basement will stay unfinished with designated storage spaced for each unit and a gym area.

I did have a sense of FOMO last winter. After touring a few units I had the wild idea of flipping an old unit, since I've always been into urban planning, home design and personal finance. This particular unit has great view from the top floor (see pictures later) and that really blew my mind -- put an offer almost immediately after the tour and went slightly over asking without contingency...

Midway in the project, I didn't expect such a quick market turnaround and feeling fairly pessimistic, since I almost bought at the peak and started construction when the building cost is also crazy... I'm working with a GC who's also new to the industry so the planning and design could've been better.

Floor plan:

Some pictures:

1. Living room -- open concept cathedral ceiling

2. Roof deck

View from 3rd floor master suite window:

Question for the forum:

First post in this forum and look for your insights. Since I'm still midway in the project there're opportunities to tweak the plan. Here're my questions:

1) Overall thoughts on the renovation plan? Does the number make sense? Any recommendation for last minute changes?

2) Future basement plan: ceiling height is really low (<6'8''). I'm thinking of at least partially digging in and finishing the basement to create a shared amenity area, or designate part of the basement to the first floor unit. Any thoughts on the basement renovation given the plan?

3) Leasing strategy for lower level: I'm thinking of doing short-term rental. Any suggestions on finding dependable housekeeping and maintenance services?

4) Opportunity area: lack of closet space (especially 2nd floor), no mudroom and only 1 front entrance. Any thought on related improvement? My GC and a few folks who have walked through the property are sort of against my proposal quoting the high costs, although I'm still curious about suggestions from this forum.

Thanks for your time!

Boston, Massachusetts

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