2-Family in Bristol, CT Deal Diary
Hello everyone. Based on the feedback we received in another deal diary, which you can find here, @Bill Labrecque and I decided to chronicle a 2-family rehab we are currently doing in Bristol, Connecticut.
Here are the basics on this property:
Purchase price - $102,000
Estimated repair budget - $25,000-$30,000
ARV - $195k-$210k
Taxes - $3806/yr
How we purchased:
Purchased with financing from a local hard money lender who financed 80% of the purchase price and 100% of the renovations at 12% interest only and 3 points charged at closing.
Unit Breakdown
- 1st floor is a 2 bed/1-bath close to 1100 sq ft unit - projected rent after rehab $950-$975
- 2nd and 3rd floor is a 3-bed/2-bath 1400 sq ft unit - projected unit after rehab $1300-$1350
How We Located the Deal
- We found this deal on the local MLS and the property was an estate sale. Based on listing price ($89,900) and location (prime location for the city it is located in) we knew this was a property that would go to multiple offers. We submitted our first bid and were notified the next day to submit our highest and best like we expected. $102,000 was the number we felt comfortable with considering the work the property needed.
The next day we were informed our offer was accepted. We had put a 2 week close in our original signed contract, but since this needed to be signed off by probate before we could close it ended up taking a little more than a month to close, which we were fine with.
- What is prime about this location? It is located directly across the street from the local hospital which happens to be in a nice section of the city the home is located in. This past fall we rehabbed and sold a 2-family house around the corner from this one and sold it for full ask very quickly, we actually posted that house for sale here on BP which you can see here. From that experience we were very confident in the ARV for this home. This house is actually bigger and has a much larger yard so we are pegging the ARV at 195-$210k as I mentioned earlier.
In the next post I will put some before pictures of the unit and the scope of work for the project also....
