The seller drove a real tough bargain during the entire negotiation phase.

Interest during construction period and rent up phase= rough 3 years= est $50,000Total= $1,790,000;  Say $1,800,000 rounded. 

So, try not to get caught up in the market analysis phase for too long!

The Gastonia area is in a rapid development phase, and is bound to see some great appreciation in the coming years (not to mention, the numbers work there more often than not).

IMHO extra extra time needs to be put into the DD and financial modeling phase given near term lower occupancy risk, continued covid in our env for years, and bad event contingency planning adding to costs (back up generators etc, relocation place some distance away)..Best of luck.

To summarize, the process would have two phases: 1) Construction phase, 2) Management stage.

Our intent is to be long term buy and hold investors Phase 1: Construction Construction time is ~12-13 monthsWe’ll fund construction with a commercial loan @ 4.99 fixed for 20-yrs w/ 25% down (~67K after closing costs / 3-4 draws during construction at interest only)Additional carrying costs include insurance, property tax, etc. (~$200 - $400 monthly)Current net cash flow from existing REI will cover construction time related carrying costs Phase 2: Post Construction / Tennant Occupied Rent the three units for $1200 each unit / $3600 total (our team feels we could yield ~$1300 – $1400 per unit present day.

I have done an immense amount of work in my education phase from reading a few books by Brandon Turner and Joshua Dorkin as well as listening to the BP podcast and the real estate rookie podcasts daily.

@Scott Mac thank you very much for this. a few of these things i have not thought of. we are entering the due diligence phase and will definitely bring up these items. just curious, do you have any office spaces?

Are there any contractors who specialize in diagnosing issues in duct without ripping the ceiling?