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201 Cleveland

Before Rehab 

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After Rehab

201 Cleveland (25)
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Details:
 
Address: 201 Cleveland St, Mishawaka, IN 46544
Property type: Residential Rental, Duplex, C+ Class
Purchase Price: $30,500
Rehab cost: $48,400
ARV: $156,664
Date of Purchase: 04/28/2015
Projected timeline for refinance or sale: 4 months
Ground Partner: Steve Shaffer
Company: Reliable Properties of Michiana, LLC
Contact details: reliableproperties@yahoo.com; (574) 217-7839
 
Documents:
 
 
AddressProperty typePurchase PriceRehab costARVDate of PurchaseProjected timeline for
refinance or sale
201 Cleveland St, Mishawaka, IN 46544Residential Rental, Duplex, C+ Class$30,500$48,400$156,66404/28/20154 months
Date of SaleSales PriceCoCAnnualized
ROI
% Difference of Projected
vs Actual ARV
% Difference of Projected
vs Actual Rehab
% Difference of Projected
vs Actual Timeline
Source of
Funds
 
 
Timeline:

05/2017

Hope to complete by end of June.

04/2017

EAC is working to re-appraise then bundle with two other properties.

03/2017

Remaining properties needing refinancing: EAC is working on alternative methods of financing (other institutions and private investors). Working through details with one solution, but if any investors are interested in fully amortized loan, paying 8% quarterly, please email Vil (vnikollaj@eacgp.com).

02/2017

Refinance in progress. Appraisals performed on subset of properties Feb 21, 2016. We hope to have these all completed by Feb/Mar timeframe.

01/2017

In process of securing long-term financing on all remaining properties in this market. EAC will be doing a combination of institutional financing, personal loans and new mortgages based on value and lender criteria. This is long overdue and we hope to have these all completed by Feb/Mar timeframe.

06/21/2016

Hopefully, I talked to our Loan Broker yesterday and today after this call to solidify the refinance to all the South Bend and Jacksonville properties that are not yet refinanced.

05/03/2016

Upper rented, lower unit on market

04/05/2016

Complete, 1 tenant upper, pending applications for second unit

03/08/2016

On market, taking applications

02/23/2016

Project complete, on rental market

02/09/2016

On the market awaiting tenants

01/26/2016

On rental market.

01/12/2016

Duplex is on the market, with punch list being completed.

12/29/2015

Under Construction moving along with no delays

12/15/2015

In final stages of finish, punch list being completed. Units are on the market for rent.

12/01/2015

The units have been placed on the market with an availability date of December 7 for move in. Units are being prepped for flooring, doors and appliances. Stand alone HVAC systems for each unit are in the installation process along with miner updates to plumbing and electrical systems.

11/03/2015

I have several feelers out with both local and national lenders and should be rate and term sheets from them this week. I am exploring both portfolio loan products and individual FHA / conventional loans for all of our properties there.

10/20/2015

We have had delays on our recent Indiana projects, and as such I felt it was critical to use my time there not only to build relationships and learn more about the area, but to evaluate our contractor, Mike Smith. Because my construction knowledge is limited, Lou Ellis offered to fly up with me so he could help me in this regard, and I’m sure glad I accepted his offer.

We started by touring all of our projects (16 in all) with our Ground Partner, Anthony Mwangi, to get a sense of the neighborhoods, the homes, and the workmanship. Most of these homes are occupied and cash flowing, so only a drive-by was possible.

But we have two SFRs which are completed and still on the market to rent, and having just come from our Jacksonville rehabs I could immediately spot shortcomings in the rehabs. These homes just were not finished to the quality we come to expect when EAC rehabs a home. The kitchen cabinets were refinished rather than new, the interior doors had mismatched hardware, and baseboards were uneven and contained gaps. These and other somewhat small details aren’t obvious in pictures, but when standing in the home the impression is not up to our standards. In order to maximize our rental income and refinance appraisal, these will require some additional work, something we’ll be completing in the next two weeks at EAC’s expense.

Moving on to the 4-plex and duplex that are slated for a rent-by-room model, we found similar issues with Mike Smith’s work on these projects. Lou was concerned about some framing and HVAC issues he saw, but because Lou doesn’t know the local codes we decided to call the city (Mishawaka) for an inspection. To make a long story short, the inspector agreed with Lou and some of this work will have to be redone.

After much discussion with Kevin and Lou, we decided that it was in our best interest to remove Mike Smith from these projects. This bold decision was made much easier by the fact that Lou offered to take over all of the Indiana projects as GC and see them through completion. We found out that earning a GC license in Mishawaka / South Bend is extremely easy and inexpensive (perhaps part of the problem!,) so Lou has already taken this step.

In the few days since my return, Lou has lined up some excellent subs and a good crew that will help us finish these projects quickly. I cannot express how impressed I am with him … once the decision was made he just took over and has everything in control. Kevin and I are so appreciative of his attitude and skills when it comes to being and effective GC, but moreso as a phenomenal Ground Partner, and frankly, a great friend. He saw that we needed help and took charge to make things right.

Lou will be working his weekends and Monday in Jacksonville, and then flying to South Bend Monday night to spend most of the work there for the next three to four weeks, until these properties are buttoned up. I have high confidence that, especially with the help of his wife Barbara, he will keep things moving quickly in Jacksonville while finishing the projects in South Bend.

10/06/2015

Interior is about 90% done and buttoning up the final items. Also cut out and framed in a new window to the LL living room that was not in the original scope but whose addition became apparent as we were finishing up.

09/22/2015

We eventually had to let the drywall finisher go and had other subs correct and finish that part of the job. Interior painting is about 70% done, kitchen counter-tops are in (LL and UL), ceramic floors and surrounds in bathrooms is about 80% complete. Floors and some windows are going in this week.

04/28/2015

Date of Purchase