Small Manchester Connecticut property package

[William Collins]

Working on a small package deal in Manchester, Connecticut. Here are links to the small package:

https://www.zillow.com/homedetails/244-Main-St-Manchester-CT-06042/2131361600_zpid/

https://www.zillow.com/homedetails/250-Main-St-Manchester-CT-06042/62540720_zpid/

These two properties are joined together in a deal due to parking for 250 Main being directly entered through 244 Main Street.  The combined purchase  was 290,000 funded by private money.

250 Main Street purchase $145,000

Rent roll $1541

250 is a 2150 sq foot  2x 1 Bedroom units.  That's right 1000 sq foot 1 bedroom apartments. Both are currently leased until April/ May. And the combined rate total is $1541/ month. These units will easily be converted to 2 bedroom apartments and per Bigger Pockets Insights  the rents would easily total  $1250 for a 2 bedroom ( we underwrite as $1100) or $1350 for a 3 bedroom ( we underwrite $1250).  We anticipate approximately $15000 in turnover and revamp costs. Separated utilities, natural gas and furnaces all functional. https://www.biggerpockets.com/insights/locations?validated_address_search%5Baddress%5D=250+Main+St%2C+Manchester+CT&validated_address_search%5Bbeds%5D=2&validated_address_search%5Bbaths%5D=1&commit=Search+address

244 Main Street purchase $145000

Rent roll $79

244 Main Street is a vacant mixed use building with 2500 sq feet of space. First floor is an office set up. The second floor is a vacant. It is later out as a 2 bedroom right now. It also has a 3 car garage. The upper floor will be easily converted to a 3 bedroom unit with some layout alterations, not even moving any walls, just some doors. All of the HVAC for are online and functional, natural gas split utilities.  The office space we are getting permission/ hardship to convert to a 3 bedroom unit to make this a 2x 3br unit. The garages need new doors and lighting but should rent for $100 each. Budget is $35000 with over run up to $50000.

So at the end here should be the totals low end

Combined Value start $290000

Combined Value end $475000

Combined rent roll start $1600

Combined rent roll end low estimate $5000

2x2br 2200 2x3br 2500 garages x 3 300 

Hard Money monthly carry cost $2200

Financed at the end $356000 for 75%

Purchase plus rehab costs $340000 to $355000

Financed through local lender at end 20 year 4% costs $2,157