Diary of a group of newbie real estate investors...2/21/2023Feb 21, 2023
Hope this blog post finds everyone doing well. We had a special treat for those in our Mastermind group who could attend.
First, we took a trip to Assonet to check out a large project one of my investor friends , Chris is in the process of selling. It's an old, large Victorian Sea Captain's home. It is a 4 family condo conversion project. The main house is 7500 sq ft and is segmented into 3 condos. Approval from the town has been given to convert the barn which is offset from the main house into another condo. It will be beautiful when it's done. Each unit will be over 2200 sq ft. We learned it was previously the town's main restaurant which is cool because they took care of the what makes a Victorian home unique. There's a beautiful wrap around porch. It's also in a great area. It is close enough to the new train station going in, but far enough away for it to still be in a quiet neighborhood. And, there is an additional 6 acre parcel, that could be included in the sale which a subdivision has been approved.
When we walked in the house, the architectural plans were laid out for us to check out and then we were able to walk the property. And, either Chris or one of his partners walked investors through the property and answered questions.
Afterwards, we headed over to Lakeville to check out a property that Chris is wholesaling. We pulled up and went into this little 584 sq ft cottage. While we were waiting, we heard this whirring sound and turned back to see Chris barreling down the road in a golf cart.
Chris pulled up laughing and let us know the plan is to add an additional 200 or so sq ft to extend one of the bedrooms and the kitchen, add a deck and clear the brush to see the beautiful views of the lake. Chris said, "I really want to give you a perspective of the possibilities of what this home could be." He brought us to his house which is in the same neighborhood, right off the lake to show the potential of the wholesale property. It is beautiful, set up like a lake cottage with shiplap walls and butcher block countertops.
He said, "Come on, let's go check out the one I just renovated." So, we drove over to his newly renovated property.
Chris explained that the footprint was a little larger than the house being wholesaled and he had finished it in a similar style as he did his house. He put this one on the market for $450k and is currently in negotiations for that price. He also pointed out another cottage that he had rehabbed. He's holding that one and is renting on Air BnB. He said in the Spring/Summer months its rented 98% of the time for $200 a night. Quick math, that's $5880 a month. And, for the off months, it's still at 65% occupancy. In the winter, he mid-term rents it for a few months before getting back into the spring season. So, we really got to learn about the BRRRR potential for the property he's wholesaling.
Then he says, "Let's go check out the one I closed on a week and half ago, we are in the beginning stages of demo and have gone through 3 dumpsters already." We literally got to see the potential for the property being wholesaled. Here's what it looks like when it's first purchased. This is what it looks like in the beginning stages with an addition on it to see what you can do, this is what it could look like completed and ready for market and this is what one looks like with someone living in it. Such an education for everyone who was there. It got me thinking about the lake in my town and all the little cottages on it.
The next day, we talked about the numbers on our zoom and how to comp properties. One of our investors said, she grew up in that area and hadn't even thought about investing there until this tour. She had us comp out another property in the area. I love seeing lightbulbs come on for people.
Happy investing until the next check in!
Bernadette Trafton, Boston AREIA Chief Connector
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