First Deal To Close tomorrow in New Britain CT!

Buying & Selling Real Estate
10yFollow

First Deal To Close tomorrow in New Britain CT!

Rick Santos
Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes

Tomorrow I will close on the first of many deals to start attaining my passive income goals. Going into this deal with a little anxiety, but feel it is a low risk deal with acceptable numbers. Special thanks to @michaelnoto for helping me through the process, he has served as a great mentor and learned a lot from him. 

Here are the details:

2 - Family New Britain - Average Area , semi industrial, somewhat quieter than other Average areas - 1978 sq ft

Purchase Price - 46,900

Rehab Budget - 35k - 5k Overage Factor - Was quoted 3 weeks, but aiming for 4-5 weeks

ARV - 120k

Cashout Refi 75% LTV - 90k -

Out of Pocket < 5k or hopefully 0!

Projected Rents - $775 each unit - Both 2BR 1 Bath Units

Approaching this one as a BRRR, looking to cash out refinance and get most if not all money back. Projecting to cash flow around $250-300/m after accounting for vacancies etc. I am aiming to do 3 of these every year to get to my passive income goals.

Plan is to hold this for 2 -5 years and then sell to trade up into a larger property. 

2Reply
7 views

14 Replies

Jump to latestLatest
  • George P.
    Property Manager · Livonia, MI · Member since 2011 · 4k+ posts · 1k+ votes
    10y

    good job.  once u do this a few times, u will join the big leagues! 

    0Reply
  • Luis Melendez
    Investor · New Britain, CT · Member since 2014 · 40 posts · 12 votes
    10y

    great job Rick. Numbers sound solid. I know new Britain well what street is it on?

    0Reply
  • Daniel Raposo
    Rental Property Investor · Norwalk, CT · Member since 2013 · 276 posts · 147 votes
    10y

    Congratulations on your first deal! Let us know how the rehab and everything goes.

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Thanks everyone should be interesting and a learning experience. Let's see how close the rehab numbers end up being. @Luis Melendez it is on Woodland St.

    0Reply
  • Jonathan Makovsky
    Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
    10y

    @Rick Santos $40K per door fixed up in a solid part of NB looks good and those rents are on mark (you can possibly squeeze a little more depending on time of year). 

    H/T @Michael Noto for putting it together!

    0Reply
  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    thanks @Jonathan Makovsky

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Thanks @Jonathan Makovsky, more rent is always better!

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Just a quick update on the first rehab. FINALLY getting wrapped up with the rehab and should be done next week. Looking forward to get it advertised and start the cash out refi process. At this point, since the 6 month mark is coming up in July, I am going to pass on the commercial financing and just stick with conventional cash out. The rehab budget came in right on par @ 35k. Depending on the ARV, i should be able to pull most of my investment back out and start cash flowing. Going to list the units for 825 each and see what kind of interest is generated. At 825 rents i should be able to cash-flow @ 500/m on a 30 year fixed.

    Lot of lessons learned:

    -Make sure to have everything in writing with contractors and have some deadlines or ways to hold them accountable. I was quoted 3-4 weeks originally and we are going to end up at around 12 altogether. I new there would be things that came up with an old house, but there was definitely a couple of weeks while i was on vacation where nothing was done. The contractor I used was related to me, but I took some things for granted and should have kept things more professional. Next time, I think I will oversee the project management side of things myself to see if i can speed things up.

    -Understand that no one is going to care more than you about your project and rehab

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Here are some before pics

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Here are some after

    0Reply
  • Lawrence L.Pro Member
    Rental Property Investor · Bronx, NY · Member since 2008 · 144 posts · 64 votes
    10y

    Hey @Rick Santos.....AWESOME JOB....and on budget!!!!!! YES!!!

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    Thanks @Lawrence L.,I spent a lot of time working on the budget and thankfully came out okay. We were actually going to come in under budget, but had some hiccups with plumbing and electrical last minute. Added 2k to the bottom line.

    0Reply
  • Lawrence L.Pro Member
    Rental Property Investor · Bronx, NY · Member since 2008 · 144 posts · 64 votes
    10y

    @Rick Santos....What kind of flooring did you use for the kitchen?

    0Reply
  • Rick Santos
    OP
    Rocky Hill, CT · Member since 2014 · 30 posts · 11 votes
    10y

    @Lawrence L. I'll have to ask the flooring guy for the name of it. I know its made by Mannington, sheet vinyl. I was pleased with the way it came out, plan on using it in all rentals moving forward. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free