How much would you pay for this "As-Is" Triple Decker in Boston?

Boston, Massachusetts
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How much would you pay for this "As-Is" Triple Decker in Boston?

Venice Victory
Specialist · Austin TX; Boston, MA · Member since 2012 · 20 posts · 6 votes

Triple Decker - Complete Gut Rehab

The numbers never lie and the description is very interesting since this is probate matter. I am interested in learning what is the most you would pay for this property? More importantly why?

In my opinion, considering the condition and all the risk that comes along with a property built in 1910 - $500K would be my offer.

There are deed restrictions that prevents expansion and optimal use of the yard.

Rehab costs for a full gut rehab approximately $650K conservatively, assuming there are no structural issues. Worst case scenario rehab costs is hard to account for since a structural damage can warrant for a demolition. 

I would love to know your thoughts, ideas and suggestions. 

Deal or No Deal??!

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Tom Wagner
Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
4y

To me the value hinges on the value of the rear lot. If you are able to sell individually or build a triplex in that area it has significant value, and if not I would pass on this property at ~any price. Having done a full-gut rehab of a fourplex previously I have virtually zero interest in doing that again without significant ($200k+) in day one equity upon stabilization.

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  • Tom Wagner
    Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    4y

    To me the value hinges on the value of the rear lot. If you are able to sell individually or build a triplex in that area it has significant value, and if not I would pass on this property at ~any price. Having done a full-gut rehab of a fourplex previously I have virtually zero interest in doing that again without significant ($200k+) in day one equity upon stabilization.

    2Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    4y

    However much it’s worth assuming it fits your strategy and you can make some money. 

    We recently just paid $675,000 "CASH" for a 3 family in Quincy. It needs about $50,000 of work but ARV is over $900k. We'll get it vacant and ready for FHA/VA buyers then flip it on MLS. It should be a good deal for a Househacker looking to live for free, or at a discount, in Quincy.

    So both prices work for the same property but the value changes based on the strategy and condition.

    How much is it worth when your renovation is complete?

    Do you plan to flip it? If so you’ll want to make at least 20-30% profit. 


    Do you plan to refinance it and hold it long term? If so then the ARV needs to support what you put into it and it'll need to cashflow when rented out.

    Or do you have some other strategy in mind? 

    Best,

    Jon

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
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    2Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    Most triple deckers in Boston are built in the 1910 but it has been my experience that they're very well built with even granite stone basements and very large footprint. I know this street well and there's other 3Fs that have already sold for $1.1-1.3mm in modest conditions so you have the right area down. Even with gut renovations and $/sf renovation figures, you're likely looking at around $100-125/sf for renovations which lands you at $525,000 for a large renovation of the unit so I think your $650k is too high. This zip code would not necessitate a very high end reno but rather slightly above grade for family renters. 

    The thing that is a red flag for me is the deed restriction where it is limiting your property's use and conversion in the future into condos etc. That in itself, will limit your use of the property and parcel.

    [email protected]
    The Elle Group5153 Reviews
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    2Reply
  • Venice Victory
    OP
    Specialist · Austin TX; Boston, MA · Member since 2012 · 20 posts · 6 votes
    4y
    Quote from @Tom Wagner:

    To me the value hinges on the value of the rear lot. If you are able to sell individually or build a triplex in that area it has significant value, and if not I would pass on this property at ~any price. Having done a full-gut rehab of a fourplex previously I have virtually zero interest in doing that again without significant ($200k+) in day one equity upon stabilization.

    Thanks for your reply and experience based insight. There are deed restrictions on the backlog, expansion is not easily attainable. I also appreciate the $200k threshold supplied. Interestingly this is a probate matter and the heir who filed the petition is being forced out. She has over $400k in documented expenses + 25% equity ownership. Any thoughts on how to best advocate for a redistribution of equity? Or how to maximize the amount of expenses she's able to claim? Our lawyer is not that helpful but has ALL 20 years of hard copy paper work.
    0Reply
  • Venice Victory
    OP
    Specialist · Austin TX; Boston, MA · Member since 2012 · 20 posts · 6 votes
    4y
    Quote from @Jonathan Bombaci:

    However much it’s worth assuming it fits your strategy and you can make some money. 

    We recently just paid $675,000 "CASH" for a 3 family in Quincy. It needs about $50,000 of work but ARV is over $900k. We'll get it vacant and ready for FHA/VA buyers then flip it on MLS. It should be a good deal for a Househacker looking to live for free, or at a discount, in Quincy.

    So both prices work for the same property but the value changes based on the strategy and condition.

    How much is it worth when your renovation is complete?

    Do you plan to flip it? If so you’ll want to make at least 20-30% profit. 


    Do you plan to refinance it and hold it long term? If so then the ARV needs to support what you put into it and it'll need to cashflow when rented out.

    Or do you have some other strategy in mind? 

    Best,

    Jon

    Since this is my grandmothers home, the original plan is to get it transferred to my mom's name so that we can proceed with the value add portion of the transaction. The courts forced us to market (although a publication was never filed) and now there is a buyer at $870k😮 "As is" & I don't understand why someone would offer that much. Do you?

    Even with my mom's equity ownership, expenses owed, and Amazing credit she was unable to secure traditional financing. I also don't understand, especially since the home will pay for itself once stabilized. Do you know why that is? The plan after the rehab is to cash out refinance at cost. ARV around $1.3M at best

    Any ideas or suggestions on how you would bring this deal home after 20 years?

    0Reply
  • Venice Victory
    OP
    Specialist · Austin TX; Boston, MA · Member since 2012 · 20 posts · 6 votes
    4y
    Quote from @Lien Vuong:

    Most triple deckers in Boston are built in the 1910 but it has been my experience that they're very well built with even granite stone basements and very large footprint. I know this street well and there's other 3Fs that have already sold for $1.1-1.3mm in modest conditions so you have the right area down. Even with gut renovations and $/sf renovation figures, you're likely looking at around $100-125/sf for renovations which lands you at $525,000 for a large renovation of the unit so I think your $650k is too high. This zip code would not necessitate a very high end reno but rather slightly above grade for family renters. 

    The thing that is a red flag for me is the deed restriction where it is limiting your property's use and conversion in the future into condos etc. That in itself, will limit your use of the property and parcel.


    Your numbers are absolutely on 🎯 This deal hold a lot of sentimental value but I certainly refuse to overpay!

    Do you have any suggestions on how to best leverage the owners equity & expenses owed, so that she can buyout her heirs? I have a hard money lender to complete the rehab. In essence I'd like to partner with my mom once the home is in her name. 

    The courts suggested she find alternate housing and she is pre-approved for $400k but as you know that will not be happening in the Boston market. My mom is also 65 and I'm against the idea of her taking out a 30 year mortgage. 

    Any thoughts, ideas or suggestions?

    0Reply
  • Venice Victory
    OP
    Specialist · Austin TX; Boston, MA · Member since 2012 · 20 posts · 6 votes
    4y
    Quote from @Venice Victory:

    Triple Decker - Complete Gut Rehab

    The numbers never lie and the description is very interesting since this is probate matter. I am interested in learning what is the most you would pay for this property? More importantly why?

    In my opinion, considering the condition and all the risk that comes along with a property built in 1910 - $500K would be my offer.

    There are deed restrictions that prevents expansion and optimal use of the yard.

    Rehab costs for a full gut rehab approximately $650K conservatively, assuming there are no structural issues. Worst case scenario rehab costs is hard to account for since a structural damage can warrant for a demolition. 

    I would love to know your thoughts, ideas and suggestions. 

    Deal or No Deal??!


     20 Year Probate Horror Story

    0Reply
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