My business partner and I are closing a 4-family rehab property tomorrow in Central Connecticut. I will be using this thread to post what we go through on a daily basis. As soon as I can I will get some before pictures up of the units. Feel free to ask any questions at all as the thread progresses and I will do my best
Here are some of the details of the purchase:
Units: 4 (all 1-bedrooms)
Neighborhood: C (working class NOT a war zone)
Purchase Price: $57,500
Estimated rehab budget: $23,000
Today we made appointments with the local gas company to come out tomorrow afternoon and get gas service up and running in 2 of the units.
Since this is a foreclosure the gas had been disconnected in one of the units and the meter was taken from another.
The other 2 units have very outdated gas units so we will be converting those units to electric.
Closing is tomorrow morning.
I look forward to your story! Best of luck!
Thanks @Brian Ortins . Should be interesting like always.
Good luck! Thanks for detailing this project for all of us to follow along. Like the idea
Thanks @Mike C. should be fun.
We had the gas turned on in the 2 units mentioned above this morning. Closing is in a couple of hours.
I will get before pics up soon as well.
Here are some of those before pics:
Can you give us an estimated SOW for what you plan? I hear a lot of success stories on here but to me success is often measured by how closely you stick to your original plan. Be great to see what you're planning, what you're estimating, and how you end up finishing against both the plan and your estimates.
Would love to see a SOW as well.
The unit looks pretty solid inside, nice buy. What do you figure your rents will be?
@Sam [email protected] Emmert We have a very good knowledge of the area and estimate that the rents will be $625 per unit.
As far as the SOW goes it is detailed below. We estimate 23k in rehab costs.
- Water & Furnace services & misc plumbing issues
- Install electric heat in 1st floor front & 2nd back floor rear
- Install spring loaded door hinges, replace locksets in all units
- install & new door in front floor rear unit
1st Floor Back Unit
- Flooring & paint
- Light fixtures, new countertop, hardware for cabinets
- install fan in bathroom, new baseboard in kitchen
1st Floor FrontUnit
- Flooring & paint
- Light fixtures, hardware for cabinets,install fan in bathroom,misc
- Paint common areas
2nd Floor Back Unit
- Flooring & paint
- Light fixtures, new countertop, hardware for cabinets, install fan in bathroom, new baseboard in kitchen
2nd Floor Front Unit
- Flooring & paint
- Light fixtures, hardware for cabinets, Install fan in bathroom, misc.
- Re build Back staircase
- Install Smoke detector system
- Exterior paint
The closing went good.
On Monday we have the plumber coming out to de-winterize the unit and to have a shower supply and valve changed out in one of the units.
Also on Monday the plan is to have one of our in house guys start on installing the electric heat in 2 of the units as outlined in the SOW.
Thank you for sharing.
I appreciate that.
Stopped over at the house this morning and the plumbers are over there getting the water and heat up and running.
Also 2 of our in house guys are there as well: 1 of them is installing heat in one of the units and the other is doing some work on the doors in the building making them fire code compliant.
Update from the work yesterday:
- The water is up and running in the house and the heat is on in the forced hot water units. We just need to replace some older faucets that leak, but that is to be expected.
- One of the heating units needs a new circulator, the HVAC company we use is going to come and install one on Wednesday.
- The plumber will be back next week to take care of the shower supply and valve that need to be replaced.
** Getting the water up and running and those heating systems working properly in the 2 units is a very good sign. For some projects things do not go so smoothly in that regard**
Work continuing today:
- One of our in house guys is continuing installing the electric heat in 2 of the units. He will likely be done with this by Friday or early next week.
- Also the work continues with making the doors in the house fire code compliant as well.
Interviews for another worker:
- We are holding interviews at our office today for a general maintenance person to help on the project. Just someone to help paint, do basic flooring, and other general maintenance duties as assigned. Our hope is that they can start on Monday the 28th.
Post Look good so far!
Thanks for the post @Michael Noto
What is your plan for the Cabinets?
Since they are pretty simple 1-bedroom rentals we are going to paint the cabinets and put new hardware on them. None of the cabinets are in really rough shape, they are salvageable. All of the countertops are going to replaced.
Today's work update:
- the electric heat has been completed in the 2 units that needed it. This work was done about 3 working days sooner than we thought. Definitely a good thing.
- The work also progressed on making the doors in the building fire code complaint.
On Tap for Tomorrow:
- The new circulator for the forced hot water gas unit that needed replacing will be done tomorrow.
- Our 2 hourly workers will be off until Friday because of the holiday.
- As mentioned above we had interviews done for a general maintenance position to help with painting, flooring, etc. We have a guy we are going to try out starting next week. Fingers crossed that he works out OK. You never really know until you try someone out.
Updates from 12/24:
- The HVAC company repaired the minor issues with the 2 HVAC systems, so the heat is all set to go.
On tap for today:
- The work will continue today on the spring loaded hinges for the doors.
- We will also start painting the trim in the back rear unit as well.
- the main focus for next week will be getting the back rear unit rent ready. The painting, the flooring, and the new countertop/backsplash will hopefully be done next week.
- The plumber will also be coming out next week to repair the shower valve that needs replacing that we mentioned above.
General Maintenance worker:
- We had interviews for a general maintenance worker earlier this week and we are hoping he can start Monday/Tuesday of next week
Your post caught my eye, I am also an Investor in Connnecticut starting out. Great detail.
@Denise Braithwaite Thanks for following along. If you need some guidance as you get started please do not hesitate reaching out.
Before the upcoming week I like to get a handle on what was accomplished the week prior so the upcoming week can be planned. We closed on this property on Friday December 19th & work started Monday December 22nd.
Things Completed Week 1
- The water is up and running and all leaks were diagnosed and fixed by our plumber
- There are 2 units with gas heat & the HVAC company we use came and did some minor repairs to get them up and running
- The other 2 units had electric heat installed this past week as well by one of our in house guys
- 4 new doors were installed in order to comply with fire code regs
- Spring loaded hinges were installed on the doors to comply with fire code regs (about 50% completed)
- Installed exhaust fan in the bathroom in the 1st floor rear unit
Week 2 Plan
- Painting, flooring, and kitchen rehab will start on the 1st floor rear unit. The goal is to get this unit up for rent asap as it is the unit that was in the best shape when we purchased
- The plumber will be back out this week to repair the shower valve in one of the units
- Work will continue on the doors to make them fire code compliant and also new locksets will be installed for each apartment as well. When I say new I mean ones recycled from other rentals that we swapped out in the past.
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