Running Diary of a 4-Family Rehab in Central Connecticut

[Michael Noto]

My business partner and I are closing a 4-family rehab property tomorrow in Central Connecticut.  I will be using this thread to post what we go through on a daily basis.  As soon as I can I will get some before pictures up of the units.  Feel free to ask any questions at all as the thread progresses and I will do my best

Here are some of the details of the purchase:

Units: 4 (all 1-bedrooms)

Neighborhood: C (working class NOT a war zone)

Purchase Price: $57,500

Estimated rehab budget: $23,000

[Michael Noto]

Update on our 4-family BRRR project in New Britain, Connecticut

• The appraisal came back at 120k so with a 75% LTV loan our loan amount will be 90k

How this impacts our final numbers is outlined below

• Hard money payoff = 69k
• Refi closing costs = 5k (this may be on the high side)
• Refi loan amount = 90k

For those of you who have been following since the beginning, we were out of pocket 16k to start the project and since then we have actually made money every month since the property has been fully tenanted which it has been since March.

So when you take the 90k (refi loan amount) and subtract it by the 74k (hard money payoff + closing costs) we should get out original 16k back that we invested and maybe even a little more if the closing costs are not as high as we expect.