Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

319
Posts
80
Votes
Patrick Wheeler
  • Real Estate Agent
  • Boston, MA
80
Votes |
319
Posts

FIRST Investment Property - Boston BRRR

Patrick Wheeler
  • Real Estate Agent
  • Boston, MA
Posted

Hey BP,

Very excited to finally be able to talk about my first project that I currently have going on! A couple weeks ago, my partners and I closed on a 3-family in Mattapan, MA that needs a decent amount of work. We are implementing the BRRR strategy and hope to be completely finished with the project within four months.

Some details about the deal:

Purchase Price - 390k
Rehab Budget - 140k
After Repair Value - 650k
Projected Cash Flow - $1,800/month minimum

Cash flow is projected by collecting $2,100/unit.

Some details about the rehab:

Plumbing - $41,500 (includes all materials, switching to gas, two new water heaters and hot water tanks and hooking up the stoves, bathrooms and kitchens)
Windows/Trim - $20,250
Electrical - $28,000 (includes moving meters outside, adding a common meter and essentially all new wiring throughout the building)
Appliances - $5,000
Flooring - $9,000
Front Deck - $2,000
Kitchen Cabinets - $8,000
Sheetrock & Paint/Plaster - $10,000
Demo/Trash - $5,000
Miscellaneous - $7,500

For this project we had to use hard money to acquire the property. Hopefully this is the last time we have to use this form of financing as it is just so expensive. We should have a few banks lined up for the next purchase that will lend a percentage of the purchase price and renovation costs, which will be great.

Again, this is my first post regarding an actual ongoing project, so if I left out any useful information definitely let me know! It should be fun to update you all as the project moves along.

Most Popular Reply

User Stats

3,269
Posts
2,367
Votes
Ann Bellamy
  • Lender
  • Tyngsboro, MA
2,367
Votes |
3,269
Posts
Ann Bellamy
  • Lender
  • Tyngsboro, MA
Replied

I hope you don't find that you wish you had a longer term.  What happens if you need an extension?  Between unexpected permit delays, possible sprinkler requirements, and the timeline to refi, I seldom see a 3 unit rehab and refi that is accomplished in 4 months.  

What happens if you need an extension?  Have you negotiated that yet?

Loading replies...