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Updated about 14 hours ago on . Most recent reply
Our first rehab project
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $500,000
Cash invested: $700,000
This is a rehab project. The title shows that the property was originally built in 1900 as a two-family house, later converted into a single-family home. It is currently in very poor condition.
We are now fully rehabbing the property and restoring it to its original two-family layout. The scope of work includes electrical and plumbing upgrades, gutter replacement, water infiltration mitigation, interior and exterior painting, odor removal (due to animals), wall repairs, full renovation of bathrooms and kitchens, and structural reinforcement.
We estimate the total rehab cost to be approximately $200,000. The projected After Repair Value (ARV) is between $800,000 and $850,000. Once the two units are rented out, we plan to refinance and cash out based on the improved value.
What made you interested in investing in this type of deal?
We aimed to create value by rehabbing and restoring it to its original layout, which is a two-family unit. The house is in rough shape but can be beautiful after repair and cosmetic care. Yonkers is a great suburban market, just 30 minutes away from Manhattan, so rental demand is strong and stable over time and the appreciation is predictable.
How did you find this deal and how did you negotiate it?
I live in Connecticut and was looking to buy and hold an investment property within a two-hour driving radius. After analyzing a large amount of market data, I identified Yonkers as a promising area with strong potential.
To move forward, I connected with several top-rated real estate agents in Westchester County and spent considerable time researching listings, primarily through Zillow. We ultimately purchased this property slightly below the asking price by making a cash offer.
How did you finance this deal?
Cash.
How did you add value to the deal?
We are putting in $200,000 to renovate this house fully.
What was the outcome?
Work in progress.
Lessons learned? Challenges?
Rehabbing helps to create value. Westchester, NY, is a highly competitive market with numerous investors possessing substantial cash reserves.