Yesterday I posted about the deal I’m working on and there was a lot of discussion on the $190k renovation (Original Post Forum: https://www.biggerpockets.com/...)

Sharing the renovation plan to get input on cost benefit analysis, feasibility, and advice from tackling similar projects.

If you are an investor and/or contractor who has experience with big renovation projects then I'd really prefer to hear from you.

A little background on this deal and the property:

* Loan: FHA203k - this is a renovation loan so there are requirements for the contractor that can be used.

- Most contractors don’t touch these loans because of how long it takes them to get paid plus all the certifications and insurance then need to have. In my area I know of 3 contractors that do 203k loans. One my realtor recommended was booked up and one was 2 hrs away. The one I went with was recommended by an acquaintance.

- Requires HUD Inspection ($1k out of pocket) after inspection the inspector gives you a specification of repairs estimate

- Timeframe - 6 months

* Property was built in 1794. Based on inspection: property has a new roof, clean crawlspace, not foundation issues, and updated electrical.

* The property has an outdated HVAC system in 2 -4 units, all 24 windows have to be replaced with certain windows, and other quirks you find in an old home; such, back porch needs to be fixed

* Unit 1 is 3 bedroom and 2 bathroom but the 3rd bedroom has a quirk

* Units 2 - 4 are 1 bedroom and 1 bathroom

* Units 2 - 4 have a bad layout. The rents in the property are way under market partially because the Seller didn’t need to make a lot of money from the home and because the layouts are bad.

* Vision: Convert Units 2 -4 into 2 bedrooms and 1 bath. The reason I'm converting is based on comps and property managers saying I can get $1,000 - $1,200 in rent by adding a bedroom. This will get me closer to the minimum $200 per unit that I'm looking for with the potential to bring in $200+ per unit.

Sharing the below floor plans for you to see the before and after plan:

Contractor/HUD Estimate of $190k: https://docs.google.com/docume...

Unit 1: https://docs.google.com/docume...

Unit 2: https://docs.google.com/docume...

Unit 3: https://docs.google.com/docume...

Unit 4: https://docs.google.com/docume...

Excited to hear what you think

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