All Forum Posts by: Craig Hansen

I myself are in a similar situation as my recent acquisition is a 7200 sqft ground floor commercial space on Main st in a small city located in CT near 2 universities. 
How small of a city are you talking about here as Class-3 has a large range.
I like the idea of an "Innovation Hub" but I do get concerned with the steadiness of rental income, especially when trying to refinance this property after getting signed leases. 
Have you thought of any other uses for the commercial space?
Have you considered any state/government agencies?
I see this post is 5 months old, what have you done with the property?

Hello all,

Recently I have acquired an old Office building on Main Street in a small city (yes city, as they have their own police and judicial system). The population of the town is ~37k. The University in town has ~4,000 undergrad students and the Major University (UConn) which is a 15 minute drive has ~19,000 undergrad students. The traffic count on main st is ~13,000 cars per day.

The building is a one story office building with a previous tenant being a insurance agency. So the interior is built out as 8 cubicles (not the easy take down wall type but actual office build out for each cubicle), 15' ceilings, 7200 sqft 1st floor 5900 sqft finished basement 2100 sqft 2nd floor in rear of building, 60' road frontage, no designated parking lot.

Obviously the most cost effective route to fill this space is to find a tenant that needs Office space but we all know the state of office space in the current market. Now that doesn't mean no one needs office space anymore but it is limited.  
So, I have thought of a couple ways to fill this space with a tenant but I am looking to open a line of communication with fellow Like Minded individuals.

I plan to reach out to/research:
Esports Franchises
A couple restaurant owners (convert space to bar and live event space)
Laundromat conversion
Government Agencies
Medical Practices

Thank you for your time and feedback

@Benny Anand

I would like to have a conversation with you in regards to some loans for my rental properties.
I am looking to cash out refi on 8 properties. SFH and MFH mix.

you can reach me at [email protected]

@Howard Todd what are you looking to do? I currently invest in Willimantic and always looking to connect with fellow investors

@Brian Pulaski

I have the correct tradesmans but, it is difficult to understand the scope of work without gaining access to the inside of the property until the current residents are out.

As long as major work is not needed then I expect to be done within the 60 days.  I would like to have the property ready before the holidays.

Welcome to this houses episode on Flip or Flop, where we are gonna risk it all in hopes of making a couple bucks.  If not, then I don't know what we'll do.

So, I will be realistic in saying that my target profit on my upcoming flip is $50k for about 60 days of work.  I won't trick everyone by saying that I might end up owing money at the sale and then turn around into a $72,450 profit.  

No, I have multiple exit strategies in line for this property.

Option 1:  Rehab and Flip for profit to go onto the next project

Option 2: BRRRR

Option 3:  Live in it during rehab and after rehab while renting out or selling my current home as the new one is an upgrade on land and neighborhood.

So, I'm sorry to disappoint anyone that has tuned in for the first ever possible FLOP but, with a plan, it is near impossible.

the Juicy Details:

Single Family Home, Foreclosed occupied  .  on hubzu.com  (was bidding on the property for about 6 months now.   Was the only bidder a majority of the time until recent when 1 other bidder decided to join the party but was only window shopping and probably scared off of the OCCUPIED status)

New London County CT  built in the late 80's

checked the public records and found the owner of the home.  Then found court records for the foreclosure to see where they are at in the process.  Found the golden goose egg (Stipulated Agreement with a Marshall execution for 9/10).  Saves me from lawyer fees.  I also, can continue the eviction if the bank doesn't carry it out.

4 bed 3 bath 2400 sqft with over an acre of land

purchase around $205k ARV of $360-400k with an estimated reno cost of $50k

The Unknown:

for being an REO Occupied property, there are no interior pictures so I was only able to see the one picture of the exterior of the home (luckily enough I live a mere 15 minutes away and can check the exterior and neighborhood better)

Connecticut has a crumbling foundation issue with many homes (crossing my fingers but also researched a little bit to make myself feel better)

How much reno will be needed?  Did they ever update the kitchen and bathrooms?  Are they gonna be vengeful against the bank by destroying the property?

STAY TUNED for what is to come

PS:  I am looking to obtain some lending to get this deal done

I know Home Depot only does samples with Behr and Glidden paint near me so, if the paint color was from a different brand then it will be off understandable.  Your best bet would be to just repaint the whole wall and open a HD Pro Xtra account so you can save your paint colors (5 years).  That ability with color saving history has saved me a lot of frustration and headaches on trying to match colors in rental properties.  I used to just use 1 color for every property but as I started to renovate some of the properties we have expanded on our color palette to help with the decor.

May I add that Sherwin Williams does work with local REI communities and Small Businesses so be sure to ask when you are there. I use Sherwin Williams paint on my flips and have not had 1 complaint yet. I pay maybe 5% more for the top quality paint then I would at HD for their top quality (still low grade) paint.

WHOLESALE DEAL 

Single Family Rental with a great ROI within steps of ECSU (Eastern State Connecticut University) and just a 10 minute drive to UCONN campus. This neighborhood has many college houses and is easy on the turnover of tenants each year as it is a desired area for the professors, faculty or students. Combined, the 2 schools enrollment is around 40,000 undergrad students

Cape style home sitting on a slab with city water and sewer.  Oil heat which the furnace is in good working order, water heater is electric and 6 years old, roof is an architectural shingle at 12 years old

Rent goes for $450-600 per bedroom in town for college students.  

Purchase price  = $100,000

Rehab Cost        = $15,000

ARV = $135,000-140,000

Yearly Income    = $21,600-24,000

Yearly Expenses = $10,800

GRM = 4.17

Cap Rate              = 13-16%

Scope of work:

Rip up carpet 

Install laminate on the first floor and 2nd floor

Replace shower

4 Flushmount light fixtures

Paint the whole inside

Build 8x8 wall to divide rooms (turn into 2 bedrooms on first floor) that were merged together via closets being ripped out

Power wash exterior

Branch removal on 2 trees

Closing date of 8/20/2018

@Ronald Rohde I have a provider for my other buildings but they are coming in very high.  I will be getting additional quotes to try and make this deal work

I'm hoping that someone may be able to help with recommendations of Insurance providers that will write a policy for a 23,000 sqft warehouse type space.  I've received 1 quote and it seems very high.