Einhorn Road, Worcester - Long Term Hold - **In Process**
Acquisition Photos & Details
This property was sourced off-market through our TheProHomebuyer.com sales funnel. The property is a 3 family with a 4th unit in the basement. The project was purchased as a joint venture with an active investor-partner. The development plan is to empty the building in June 2025 and perform renovations throughout the summer, then lease all 4 units come mid August, 2025. This building is located ON the WPI campus, which commands about $1000+ per bedroom in minimum rents.
Project KPIs and Projections
Acquisition and Project Basics
Project Type: BRRR
Property Characteristics: 3 Unit with In-law, total of 8 bedroom, 4 baths
Location: 01609 Worcester
Acquisition Source: The Pro Homebuyer
Construction/Improvement Timeline: 2 months
Total Timeline: 8 months to stabilization
High Level Financials
Acquisition Price: $560,000
Rehab & Carrying Costs: $180,000
Targeted Refinance Value: $840,000
Targeted Gross Rents: $9,400/month
Targeted Expenses: 24%
Investment Metrics
Debt or Equity: JV with active investor 50/50, plus 80% LTP bank financing
Repositioning the debt at stabilization to 75% of new appraised valued
Projected cash left in the deal after cash-out refinance: $120,000 total
Projected Year 2 cash flow: $36,000
Projected COC Return per partner: 30%
Value Add Summary
High Level Scope of Work:
- Add Sprinkler and Fire Alarm to make 4th unit legal
- Update finishes throughout
- Replace all electrical and service
- Replace furnace and HW
- Replace old toilets, faucets, washing machines and other appliances
Value Add Highlights:
- Adding 4th legal unit will bring immediate $185k increased value
- Removing existing oil furnace and replacing with HE gas combi unit and smart thermostats throughout will decrease heating and HW costs by appx. 30% annually
- Rewiring each unit to remove outlets with no grounds, adding a fresh 125amp panel to each unit, and separately metering each unit will allow operators to pass electric costs directly to tenants, lowering operating costs by 20% out of the gate.
- Water conserving plumbing appliances will be installed throughout, lowering the water/sewer bills by an estimated 10% annually, if not more.