79 West Main 2 Units Norton, MA

Disposition Photos

This property was purchased as a large single family home. Once part of a grand estate, the heirs decided to parcel off the lots and the house. This home had more than 4,000 square feet of usable area. In order to take the best advantage, town approvals to change use from a single to a multi were necessary. A previously covered “pool house” was converted to a large, second dwelling unit.

Post Rehab - Unit B

Unit B, which is the front-side, main-house, is a 4 bed, 2 bath cape-style home. This home boasts large bedrooms and 2 full bathrooms. The basement has over 1,000′ of additional heated space. We performed a cosmetic rehab, updated the kitchen and baths, and updated the utilities. The home is now rented on a long-term lease.

Post Rehab - Unit A

Originally an outdoor pool in the 1970s, and then covered in the 1980s with a well-built free-spanning structure. In the 2000s the previous owners illegally converted the structure into 2 apartments. To best capitalize, we received town zoning and planning approvals to convert the structure into a 4 bed, 2 bath apartment. This change of use also triggered stretch code. This portion of the project was the bulk of the heavy lifting, but completion added $275,000 to the property value and $60,000 in gross rental revenues.

Project KPIs

Acquisition and Project Basics

Project Type: BRRR

Property Characteristics: As Complete – 8 bed, 4 bath

Location: Norton, MA

Acquisition Source: Wholesaler

Construction/Improvement Timeline: 4 months

Total Timeline: 8 months with approvals

High Level Financials

Acquisition Price: $535,000

Rehab & Carrying Costs: $300,000

As-Complete Value: $940,000

Value Created: $100k in free equity

Investment Metrics

Purchase Debt: Private investor, 75% of purchase price, another $100k drawn at unit A permits

Investor Returns: $42,000 in interest payments, prior to payback

Annualized Rate of Return to Investor: 12%

Refinance: Bank Financing, cash-out refinance, 70% LTV

Cash Out and Cash Remaining: $150k cashed out at refi, $170k left in the project

Gross Rents: $9,500 monthly combined

Operating Expense: 21% of gross

Returns: 22% COC returns, all cash left in the deal will be paid back in 5 years

Value Add Summary

High Level Scope of Work:

Unit B – Kitchen and bath updating, paint throughout, and cosmetics to restore the “90s” look to modern, durable finishes
Unit A – Full stretch code rehab. We essentially built a new 2,000′ home inside an existing shell.
Unit A required all framing, layout, windows, doors, insulation, plumbing, electric/service, and finishes.

Value Add Highlights:

This home had massive potential and is ideally located for a rental with access to public transport, schools, shopping, and highways
The 5 year plan is to sell these as condos, all work was done to easily split these parcel into 2 large condos.

79 West Main Unit A & West Main Unit B - After Rehab

Unit A features 4 beds, and is a 2 full bath unit. Also below are pictures of the 4 bed, 2 bath unit. That unit is completely rebuilt and is highly efficient, scoring a HERS rating of just 42.

West Main Street, Norton - At Purchase

Below are photos taken of West Main St prior to the undertaking of converting the property into a multifamily building.

STATUS: Rent