First Quadplex - Newport, DE
Last November, a partner and I purchased a quadplex in Newport, DE for 40k after negotiating directly with the owner who was way in over his head trying to rehab by himself (much more to that story...).
This was a complete gut job of 4500 sf. There are two 3/1 units, one 2/1 unit and one 1/1 unit. It was a very big job, but my partner's construction company has done all the work and we are 90% complete after 3 months. Hoping to have it fully rented by 4/1. Then we'll refi and do it again. And by the way I have a possible deal on 6 duplexes (12 units) and could use some hard money lenders.
Summary
Purchase = 40k
Rehab = 160k
Total = 200k
ARV = 450k
Unit 1 = 1400/mo
Unit 2 = 1200/mo
Unit 3 = 900/mo
Unit 4 = 1300/mo
Total Rent = 4800/mo (2.4% of investment)
Interior pics to follow in a separate post but here are the exterior...
Before
After
Originally posted by @Joshua S.:
Thanks! That's excellent! Got any tips for finding a really good contractor like that?
Get lucky - And then make them a partner
HUGE CONGRATS on that rehab!!! I've driven past it many times going up Rt 141 and have seen the progress. Looking forward to seeing more pics and hearing more stories such as yours. I live in DE and am new to REI. Working through the education process while fixing my own home to get a HELoC to fund my 1st deal ... hopefully a duplex / triplex for a buy and hold. Again, congrats to you and your team and I wish you an abundance of success :)
141... ay yi yi! :) No wonder I haven't seen it (I avoid 141 at all costs with the bridge replacement, and now they're commencing road work down to one direction each way due to more construction)
Congrats @Jack Clough it sounds like a great deal!
Nice job @Jack Clough. That looks to be a really great deal.
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Real Estate Agent Georgia (#375789)
- Rotor Realty Group LLC
Quadplex, Newport, DE - Part 2
All work is complete and all units rented. Our total cost for rehab ended up being approx 225k. I had estimated gross rent at $4800, but actual rent is $4400.
Large 3 bed (estimate $1400), actual $1400
Small 3 bed (estimate $1300), actual $1200
2 bed (estimate $1200), actual $1000
1 bed (estimate $900) actual $800
As promised here are the interior pics:
correction: total rehab cost was 185k and purchase 40k. So total "all in" was 225k
Very nice!!! Congrats on the finished product and having them all rented. Looking forward to seeing more renovations from you and your team!