We have finished the interior demo as well as the initial rough-ins for electrical/plumbing. Our team is now moving full force into the cosmetic renovation of this property. Wait until you see the transformation coming this month! This project should take until right before Christmas to be finished then we will look to list it shortly after the New Year. When listing properties, the winter/holiday time is one of the slowest times to try to sell a property, so sometimes it is better to wait a few weeks to list than during the holidays. That is okay because then we can make sure all the final punch list items can be completed, we also conservatively underwrote for a time delay for this. Stay tuned for before and after photos!
Our novation agreement rehab is complete and we listed it for $215k at the end of October. Within 2 days we had 3 offers and one was $10k over asking which we accepted for $225k! The buyer’s inspection and appraisal is completed and we are looking to close this week. The owner of the home is thrilled and is going to be walking away with a profit as well as a clean slate of no loans/judgements. We are happy to help the seller, who was in a tough situation, get out without filing bankruptcy or being foreclosed on so he can start a new chapter in his life. We will be walking away with a good profit as well! We currently have put around $30k of our own money into this deal and will look to walk away with around a $40k+ profit plus our money back within just 2-3 months. That is around a 550%-800% return annualized. What a win-win for everyone involved!
We’re excited to announce that we’ve accepted an offer of $2.7 million for this property, with the closing scheduled around the end of January 2025. This sale represents an impressive 26%+ return for our investors after just one year of ownership. To maximize these gains, we plan to execute a 1031 exchange, reinvesting the proceeds into a new multifamily asset.
This duplex was one of our first deals that was BRRRR’d. Currently the property is stabilized and providing exceptional returns. We worked with the Worcester, MA zoning department to get an approval to subdivide some land on the property that will allow us to either build another single family, duplex or sell off. We were recently approved for the subdivision and after crunching numbers to build or sell the land, we decided the best play would be to sell the land. We put the land up for sale and have accepted an offer of $130k! This is $10k higher than we expected which is fantastic. The cherry on top is that the total profit from this land sale will be 100% tax free. This is due to the land being initially part of the duplex, which was Wendell’s primary residence a little over a year within the past 5 years. If you live at a property for more than a year, you can get tax free long term capital gain income up to a certain amount. Usually it is up to $250k if you lived there 2 years out of the past 5 years and $125k if you lived there for 1 year out of the past 5 years (please confirm with your accountant depending on your situation as I am not an accountant). After closing costs, we will be looking at around a $123k profit, just below the $125k cutoff, meaning it is all tax free profit! This initial house hack duplex deal has become a home run of a deal and we are excited to get this closed and immediately put these funds into the next project! We are looking to close early December.
Our first Rock Hill, SC fix/flip has officially closed! This was a great base hit fix/flip where we made around a $15k profit on $40k spent within 3 months. That is about a 170% return on our money annualized. It was a little less profit than we would like, but with the market turning a little soft recently from the season and the election we are still thrilled to make a new homeowner happy and move onto new deals.
One of our first large multifamily investment projects came to a full cycle this year. We bought this property around 2 years ago for $470k, put about $130k into it and took it from only producing $34k gross annually to around $130k gross annually. We then sold it for $1.0375M with a total cost basis of around $600k. What a deal this was! We learned so much from this deal and it put us on the track we are on today. From dealing with the tenants, evictions, setting up our own property management, leasing out units, hiring a third party property manager, dealing with town zoning/ regulations and facilitating all the renovations, it really was like going to real estate school. Although it was hard to sell, since it was sort of our baby and we do love long term investments at heart, the gains/profit that we received from the sale has allowed us to hit our stride full force. We will be looking to put out a case study video on this project to help educate anyone interested in the power of real estate, stay tuned!
