All Forum Posts by: Jack Clough

Quadplex, Newport, DE - Part 2

All work is complete and all units rented. Our total cost for rehab ended up being approx 225k. I had estimated gross rent at $4800, but actual rent is $4400.

Large 3 bed (estimate $1400), actual $1400

Small 3 bed (estimate $1300), actual $1200

2 bed (estimate $1200), actual $1000

1 bed (estimate $900) actual $800

As promised here are the interior pics:

 Get lucky - And then make them a partner

 Actually this is the first rehab of this magnitude for me, but I have a ton of confidence in my contractor. So much so that we began two more full gut sfr rehabs in January for the purpose of flipping. One is a 1200 sf row home and the other a 3500 sf historic district single detached row home that I bought from Fannie Mae for 75k. These are scheduled for completion by May and June.

 Moises - yes it was risky but I took the risk away by making sure I had an exit strategy. I knew that worst case scenario we could sell and still make a few bucks.

 Thank you. I actually had to use a heloc to fund my half so needless to say I'm looking forward to the refi. My partner used his savings. The banker says we won't need a seasoning period. I'd post the interior pics now but we're just finishing up the painting process. Next is carpet, vinyl for baths and kitchens, cabinets (we became a cabinet dealer so we can do a whole kitchen now for $1200), fixtures, punch list...

 yes, we met with the intent of doing business. We went in 50/50. He manages the rehab and I find more deals for the pipeline. 

@Eric Armstrong, thanks. I agree that I may be optimistic on my rents, but we've had a lot of interest so we'll see. Also, each apartment has its own in-unit washer and dryer and again they are all brand new construction. 

Additionally, there is a 30x15 garage in back that I didn't mention. It is not accessible for cars, but we rented it as storage space for $800/mo. So, really we have a 5-plex.

As far as location, this is one of the safest areas in Wilmington due to Newport being its own township and having its own (no tolerance) police force. The code officer lives next door. There is a very popular skate park 1/2 block away and access to 95 is 1 block away.

We have yet to do the finishes but have completed the drywall, trim, doors, paint. Trying to rent by 4/1 so I'm showing the place today between 2-4. Feel free to stop by. 

@Dawn Curry, the wholesaler contacted me because she saw me post about Delaware on BP at some point. The rest of the story you can read above.

Also, my biz partner is a construction guy so his crew did all the work. I didn't have to lift a finger!

@Rohith Janga, the wholesaler was never going to get 180k and I knew that. She was falsely advertising the place as having two apartments that were move-in ready (we had too gut the whole place), and the porch work being nearly done (we had to tear it down and re-pour the cement). The last time she contacted me she was down to 80k. I knew that no one in their right mind would pay more than 60k which means that anyone she showed the property to was being misled and would not have interest. And even if they did pay 60k, that wholesaler was going to take 20k off the top.

@Brian Garrett, It might not exist with the same numbers, but relatively speaking it could. I spent a week in Delray Beach last December. That place is growing like crazy and the number of restaurants downtown has tripled in the last 5 years. But two blocks away there are some SFRs that look like great flips or buy and holds They're going to quickly run out of affordable apartments that are walkable to the main street and I have to think there is a huge opportunity there. Any thoughts on Delray? Have you looked at that area?