All Forum Posts by: Joni Shehu

Investment Info:

fix & flip investment.

Purchase price: $200,000
Cash invested: $20,000
Sale price: $388,000

This was our first "wholetail" where we purchased a distressed multi-family in Dudley Square in Boston and flipped it to a developer. Once realizing it was a big re-development we found the right buyer who ended up re-developing the property. On top of a great profit, we learned the process, made a great relationship and still use some of the resources that the developer introduced us to.

Investment Info:

buy & hold investment in Boston.

Purchase price: $75,000
Cash invested: $20,000

This is a vacant lot next to our 17 Maywood St building. Same owners but owned under a separate deed. We purchased it for $75,000. We went through the zoning and permitting process and got permits approved for 3 units.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Boston.

Purchase price: $50,000
Cash invested: $20,000

Contributors:
Enis Shehu

We acquired a vacant non-conforming lot. We started the re-zoning and permitting process 2 years ago. We finally got approvals to build 3 condos.

Financing & Deal Structure:

• Purchase Price: $1,550,000
• Bank Financing: $1,162,500 of Purchase Price at closing
  • Financed by: South Shore Bank
  • Interest: 5.46 %
  • Points: 0.75 Pts
  • Interest Reserves: $60,000
  • Closing Costs: $23,000
  • Terms: 25 Year Amortization
  • 10 Year term.
  • 5 Year fixed.
• Down Payment at Closing: $400,000
  • Private Investor + Own Cash
• Actual Rehab Cost: $385,000

Summary:

• Purchase Price: $1,550,000
• Rehab: $385,000
• ARV 3 Unit: $2,000,000
• ARV 4 Unit: $2,400,000
  • Appraised values came in at $2,300,000 for 4 unit with lower rent roll projections given.
• Equity Created: $500k+
• Projected Monthly Rent Roll: $15,500/month
• Projected Monthly Cashflow: $2,328/month
• Projected CAP Rate:

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Boston.

Purchase price: $1,550,000
Cash invested: $385,000

Contributors:
Enis Shehu

This is one of our long-term buy&Hold properties. A multifamily property in Cleveland Circle (Boston).

How did you find this deal and how did you negotiate it?

Off-market deal.

How did you finance this deal?

Local Bank - Commercial Loan

How did you add value to the deal?

Changing floor plans from 2 bed /1 bath to 4bed / 2 bath. Also making the 4th unit a legal apartment.

Lessons learned? Challenges?

During a gut rehab of a multi family, you can sub meter the water to each unit. Passing the water cost to the tenant. The cost is negligible but the savings over the years are massive.
Sprinkler Challenge (Timing)
Understanding Zoning & Timeline
Demo Challenge in Boston. Very challenging and expensive.
Projected Rent Numbers on Rent.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Boston.

Purchase price: $1,550,000
Cash invested: $385,000

Contributors:
Enis Shehu

Building Details:
4 Floors
Total Area: 6380 SqFt
3 Legal Units
Previous Unit Breakdown: 2 Bed /1 bath for top 3. Basement was 1 bed /1 bath
Current Unit Breakdown: 4 Bed/2 Bath for all units.
Changed occupancy to a Legal 4-unit

Summary:
Purchase Price: $1,550,000
Rehab: $385,000
ARV 4 Unit: $2,500,000
Equity Created: $500k+
Projected Monthly Rent Roll: $17,500/month
Projected Monthly Cashflow: $3,328/month

Lessons Learned:
During a gut rehab of a multi family, you can sub meter the water to each unit. Passing the water cost to the tenant. The cost is negligible but the savings over the years are massive.
Sprinkler Challenge (Timing)
Understanding Zoning & Timeline
Demo Challenge in Boston. Very challenging and expensive.
Projected Rent Numbers on Rent.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Boston.

Purchase price: $1,550,000
Cash invested: $385,000

Contributors:
Enis Shehu

Building Details:
4 Floors
Total Area: 6380 SqFt
3 Legal Units
Previous Unit Breakdown: 2 Bed /1 bath for top 3. Basement was 1 bed /1 bath
Current Unit Breakdown: 4 Bed/2 Bath for all units.
Changed occupancy to a Legal 4-unit

Summary:
Purchase Price: $1,550,000
Rehab: $385,000
ARV 4 Unit: $2,500,000
Equity Created: $500k+
Projected Monthly Rent Roll: $17,500/month
Projected Monthly Cashflow: $3,328/month

Lessons Learned:
During a gut rehab of a multi family, you can sub meter the water to each unit. Passing the water cost to the tenant. The cost is negligible but the savings over the years are massive.
Sprinkler Challenge (Timing)
Understanding Zoning & Timeline
Demo Challenge in Boston. Very challenging and expensive.
Projected Rent Numbers on Rent.

@Eric Girard there's many reasons.

One being, using it for tax benefits through cost segregation where one reallocates assets in a property to personal assets and it allows owners to take accelerated depreciation.

For example a $2m building with negative cashflow can mean a $500k depreciation (and tax deduction) on year 1. Pretty great deal for specific buyers.

Come and join us for a walkthrough of our Wayland flip.
We bought this house recently and have gutted most of the inside.
We would like to share with you:

- How we found this property off market and the negotiations that allowed us to get it at a deep discount
- How we financed the purchase price
- What the scope of work looks like and repair estimates
- Analysis of all the numbers and potential profit
- Lessons Learned

We will share with everyone attending our analysis spreadsheet so make sure you attend.

Plus it will be a great networking event so bring plenty of business cards.

Lunch will be served so please RSVP and let us know if your plans change!

THIS EVENT IS FREE TO ATTEND

Just reminding everyone that this event is THIS SATURDAY (August 25) starting at Noon.

We're adding catering as well.

Again, this will take place at the property under construction: 59 Strathmore Rd, Brighton, MA