Deal Diary of 8 Unit property in Norfolk Virginia

6 Replies

We closed on an 8 unit building in the Hampton Roads region of Virginia on 19 Mar 2021, more specifically in the Ocean View section of Norfolk not far from Virginia Beach. the specifics of the property are as follows:

Address: 1600 Queens Land Ave. 

Unit Count: 8 

Unit break down: 2 BR, 1 BA

Unit SqFt: 650 

Build Date: 03/07/1985 

Original Sales Price: 50,000.00

Assessed Value: 477,300.00 

Strike Price: 500,000.00 

Contract Price: 481,000.00

Final Sales Price: 476,500.00

EST ARV: 750,000.00

Rehab budget: 60,000.00

Parcel size: 9,500 SqFt 

Contract Date: 02/12/2021 

Closed Date: 03/19/2021

Occupancy: 6 of 8 rented, 1 moving out within 30 days of close.

Lease Status: 5 of 6 residents on month to month, 1 resident under lease till Nov 2021

Current monthly rental income: 4,265.00

Projected Monthly income post stabilization: 7,200.00

Due Diligence Issues Found: Leaking roof over laundry room, Quest piping throughout, Parking lot in need of repair, lackluster accounting, old outdated leases, no real management present and a ton of deferred maintenance.

The process leading up to this point is detailed here: https://www.biggerpockets.com/...

I will document the process as best I can here and try to provide at least weekly updates.

Week 1:

We are in the building and tenants have been notified of the change of hands in management and ownership.  We have two vacant units with another one coming vacant soon and we have begun tear out.  Concurrently we have started working on the laundry room which is a disaster.  All the old cabinets, vanities, fixtures, flooring, polybutylene (quest) plumbing and appliances have been removed. 

Week 2:

All new toilets, vanities have been obtained.  Water meters have arrived to submeter all 8 units, 3600lbs of porcelain tile and ceiling fans are here as well.  Electrical in the vacant units (outlets, switches, ceiling fans, light fixtures, faceplates, gfi's) has been removed and replaced.  Laundry room has new electrical as well, lighting with motion switch new door and drywall repairs complete.  Subfloors have been screwed down to alleviate creeks and squeaks, kitchens and bathrooms have been prepped for tile.  Plumbing in the vacant units have been re-piped in PEX and sub meters are installed.  

Holy moly! What a lot of detail. Going to check the pics out more.

So, what's been the most difficult part so far and how'd you overcome it?

Stay Awesome and Keep Busting Butt!

@Ed Brancheau So far really the only "hard spot" has been the polybutylene (Quest) piping.  We were not ready for it when we found it and although we knew we would have to do some plumbing (sub metering and repairs) we were not initially tracking a complete re-pipe.  Unfortunately that's where we are, day one the morning following closing we were poking around pulling off cabinets and had the shut off valve explode at the fitting, then another fitting blew so had to kill the water to the building for an hour or so while we got a temp repair in place.  That stuff is a ticking time bomb but at least we know now and shouldn't have to worry about plumbing headaches once we get it all done

Week 3 update to our Hampton Roads 8 Unit located in Norfolk Virginia

This week we had a tenant move out so we got to start fresh in another unit.  Move out inspection was at 2pm and we had the unit torn out and in the trailer by 5.

Unit 11: Cabinets are starting to go up and we got the bathroom floor tiled.  Found a great cabinet supplier with cabinets in stock and pre assembled, white shakers with good sliders and plywood construction for a price we couldn't match, even in a cheaper grade.  We loaded a 6x12 trailer full of them.

Hallways: started sanding and prepping for paint, then stairs will get all new treads and risers.

Unit 55: Not much happened in here this week, will get floors and cabinets next.

Unit 77:  Tennant moved out and we got it torn out.  New outlets and switches went in.  Unit completely re-piped, submeter installed and dry wall repaired.  Ceiling fans installed.  New Water heater is ready to be installed

Laundry Room: automatic door closer and keypad lock with auto lock function installed. Hose bib torn out and replaced, was not working previously, at some point the isolation valve in the wall was drywalled over.  Looks like the exterminator is doing a great job as we have found a ton of dead insects (roaches) but haven't found any live ones yet.

All in all a good week, we had all hands on deck and lots of work got done For more pictures and information follow along with us at www.facebook.com/BulMacPropert....

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