Running Diary of a 2-Family Flip in Plainville, Connecticut

[Michael Noto]

@Bill Labrecqueand I are working on a 2-family flip in Plainville, CT.  The property closed in the beginning of February.  We have been meaning to post this for a while.

Here are some of the key numbers

• Purchase price: 95k
• rehab amount: 30k
• ARV: 190k
• Area: Solid B area (can something be a B+?)
• Rents: 1st Floor 2 bedroom ($975), 2nd floor 3 bedroom ($1100)
• taxes: $4600
• Land: 0.50 acres
• Gas Heat

Plan A: complete the rehab and refinance

Plan B: complete the rehab and sell the property

I will post the detailed scope of work later, but here are some before pictures

[Michael Noto]

@Barbara G. We have to wait 3 months from the time of purchase, have the rehab finished, and units rented in order to have the refi based on the appraised value with our portfolio lender. Our lender will do 75% LTV if the cash flow is strong, but they prefer 70%.

The only reason this property has taken longer to renovate is because we had our guys (2 of them) rehab pretty much the whole house and when you combine that with the fact that the outside work was delayed because of the weather it has taken us a little longer than usual.  We planned for that though, and the money we save by having our guys do the work was worth it for this particular project.  Typically if we sub contracted this project out, in good weather the rehab probably would have taken 6 weeks.  Again however, we knew what the obstacles were going to be and planned for them.

I know its hard if you do not know the area, but to get a multi-family in this area of Connecticut for as inexpensive as we did is a rare opportunity and we structured the rehab the way we did so we could capitalize on the deal and not pass it up.