FIRST Investment Property - Boston BRRR

[Patrick Wheeler]

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.