This has been by far the most inspiring project to date!

What is exactly "Sold Through An Application Process, Project Agreement Recorded At Closing Requires Rehab Within 24 Months Of Closing And Before Resale" really mean?

Basement was 1 bed /1 bathCurrent Unit Breakdown: 4 Bed/2 Bath for all units.Changed occupancy to a Legal 4-unitSummary:Purchase Price: $1,550,000Rehab: $385,000ARV 4 Unit: $2,500,000 Equity Created: $500k+Projected Monthly Rent Roll: $17,500/monthProjected Monthly Cashflow: $3,328/monthLessons Learned:During a gut rehab of a multi family, you can sub meter the water to each unit.

Basement was 1 bed /1 bathCurrent Unit Breakdown: 4 Bed/2 Bath for all units.Changed occupancy to a Legal 4-unitSummary:Purchase Price: $1,550,000Rehab: $385,000ARV 4 Unit: $2,500,000 Equity Created: $500k+Projected Monthly Rent Roll: $17,500/monthProjected Monthly Cashflow: $3,328/monthLessons Learned:During a gut rehab of a multi family, you can sub meter the water to each unit.

Financing & Deal Structure: Purchase Price: $1,550,000Bank Financing: $1,162,500 of Purchase Price at closing Financed by: South Shore BankInterest: 5.46 %Points: 0.75 PtsInterest Reserves: $60,000Closing Costs: $23,000Terms: 25 Year Amortization 10 Year term.5 Year fixed.Down Payment at Closing: $400,000 Private Investor + Own CashActual Rehab Cost: $385,000Summary: Purchase Price: $1,550,000Rehab: $385,000ARV 3 Unit: $2,000,000ARV 4 Unit: $2,400,000 Appraised values came in at $2,300,000 for 4 unit with lower rent roll projections given.Equity Created: $500k+Projected Monthly Rent Roll: $15,500/monthProjected Monthly Cashflow: $2,328/monthProjected CAP Rate: 

A 3-month project from start to close.

It’s mostly used with land or other development projects.

Sometimes it can be cheaper to build than it is to buy existing however in most areas of the country right now it will take you minimum three years to develop a project and ground up get it to stabilization so you need to consider the time factor.

Lot's of syndicators are pushing it but it's top cycle right now and lot's of their projections might not come to fruition over the hold period.

I always start a project with a written scope of work, just in case... been burnt too many times.