Hartwell Street - Long Term Hold
Acquisition Photos
This property was listed and sold through the MLS. The property showed great rental potential with the ability to convert both units to 3 bedrooms, 1 bath each. The house needed the works, but has proven to attract great tenants who don't mind paying the higher price tag in exchange for a highly-efficient and spacious apartment.
Post-Rehab Photos
This property had was improved from the basement floor to the roof. New driveway, landscaping, MEPs, and full interior were overhauled. We will enjoy little-to-no capex and maintenance for years to come.
Project KPIs
Acquisition and Project Basics
Project Type: BRRR
Property Characteristics: Duplex, 6 total beds, 2 total baths
Location: Southbridge, MA
Acquisition Source: MLS
Construction/Improvement Timeline: 3 months
High Level Financials
Acquisition Price: $198,000
Rehab & Carrying Costs: $275,000
Appraised Value Post Rehab: $545,000
Value Created: ~$75,000 in free equity
Investment Metrics
Initial Purchase: 70% Loan to Purchase, private lender
Investor Returns: $10,000 in interest payments made to investor
Annualized Rate of Return to Investor: 12%
Refinance: Bank Cash Out Refi, 70% LTV - $381,500
Cash left in the project: $88,500
Gross Rents: $5,300 monthly
Return on Investment: 26% COC
Value Add Summary
High Level Scope of Work:
- All new electric, plumbing, and gas HW baseboard
- New roof, gutters, insulation, doors, windows, kitchens and finishes
- Improved the grounds to allow ample parking, outdoor areas for dining and seating
Value Add Highlights:
- Each unit had a bonus room that was completed into a 3rd bedroom.
- In the basement we poured a new floor, added a 2nd entrance, and provided means for storage for both units.
- No common areas - there is no "house" meter for electric or gas
- Water is metered for each unit so ALL utilities are billed back.