2-Family in Bristol, CT Deal Diary

[Michael Noto]

Hello everyone. Based on the feedback we received in another deal diary, which you can find here, @Bill Labrecque and I decided to chronicle a 2-family rehab we are currently doing in Bristol, Connecticut.

Here are the basics on this property:

Purchase price - $102,000

Estimated repair budget - $25,000-$30,000

ARV - $195k-$210k

Taxes - $3806/yr

How we purchased:

Purchased with financing from a local hard money lender who financed 80% of the purchase price and 100% of the renovations at 12% interest only and 3 points charged at closing.

Unit Breakdown

- 1st floor is a 2 bed/1-bath close to 1100 sq ft unit - projected rent after rehab $950-$975

- 2nd and 3rd floor is a 3-bed/2-bath 1400 sq ft unit - projected unit after rehab $1300-$1350

How We Located the Deal

- We found this deal on the local MLS and the property was an estate sale. Based on listing price ($89,900) and location (prime location for the city it is located in) we knew this was a property that would go to multiple offers. We submitted our first bid and were notified the next day to submit our highest and best like we expected. $102,000 was the number we felt comfortable with considering the work the property needed.

The next day we were informed our offer was accepted. We had put a 2 week close in our original signed contract, but since this needed to be signed off by probate before we could close it ended up taking a little more than a month to close, which we were fine with.

- What is prime about this location? It is located directly across the street from the local hospital which happens to be in a nice section of the city the home is located in. This past fall we rehabbed and sold a 2-family house around the corner from this one and sold it for full ask very quickly, we actually posted that house for sale here on BP which you can see here. From that experience we were very confident in the ARV for this home. This house is actually bigger and has a much larger yard so we are pegging the ARV at 195-$210k as I mentioned earlier.

In the next post I will put some before pictures of the unit and the scope of work for the project also....

[Michael Noto]

Bristol, CT 2-family deal diary update

Since the last update, we have gotten a lot of work done on the 2nd/3rd floor townhouse style unit:

• All of the painting on both floors and the common area is complete
• All of the flooring has been done outside of 1 of the bedrooms which will be done today
• The 2nd floor re-work is complete, we added a bedroom and opened up the dining/living areas
• The remodel of both bathrooms is now done also
• stainless steel appliances for the 2nd/3rd floor unit have been delivered & installed

**progress pics below**

As far as work remaining on this project as a whole we have the following:

• flooring in 1 bedroom
• finishing touches to flooring (trim, etc)
• put blinds, light fixtures, outlet covers
• have the unit cleaned
• outside touch up painting and yard maintenance

After all of this is complete we should be able to list. A realistic target for listing is August 1, hopefully sooner.