Call us: +1 858-255-1012

226-228 Cleveland

Before Rehab

IMG_4018
« 1 of 25 »

 

Rehab Update

20160511_135022
« 1 of 5 »
Details:
 
Address: 226 228 S. Cleveland, Mishawaka, IN 46544
Property type: C+
Purchase Price:  $24,000
Rehab cost: $90,000
ARV: $140,000
Date of Purchase: 02/27/2015
Projected timeline for refinance or sale: 6 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
226 228 S. Cleveland, Mishawaka, IN 46544C+$24,000$90,000$140,00002/27/20156 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

Expected to refinance mid June.

04/2017

Refinances in progress: 226-228 Cleveland is expected to refinance April/May timeframe.

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.

09/20/2016

Indeed we did have a delay due to the long process of rehabbing the 4-plex at 226-228 Cleveland Ave. That 4-plex is now done and has 3 of the 4 units rented.

07/26/2016

Units are currently being advertised for rent and immediate move in..

07/05/2016

Final stages of completion (punch list/electrical final). 4 units are listed for rent and anticipate a quick turn around to fill.

06/21/2016

In final stages of completion, on rental market with target of July 1 for occupancy.

06/07/2016

Awaiting cabinets for 4 units. Second floor complete minus cabinetry, final plumbing.

1st floor drywall complete, painting complete, final electric end of week, flooring mid week next
week.

Final plumbing both floors end of next week (pending flooring on time)

Awaiting site plan on parking lot

Gutters installed on building

05/17/2016

Second floor drywall is finished and painted.  Sub-floor going in today and flooring this weekend.  Final electric is complete on the second floor also.  Plumbing final next week. 1st floor drywall is hung, finish is taking place now and should be complete Monday.  Finish electric scheduled Tuesday as is painting. Drywall complete, second floor flooring installed, final electric, plumbing, HVAC moving forward.

05/03/2016

Construction phase, moving ahead very well. Second floor drywall, HVAC complete.

04/19/2016

Construction phase – Completion schedule end of May

03/22/2016

Insulation and Drywall phase of project, projected completion on this phase April 15, 2016.

03/08/2016

Siding, Windows complete, insulation drywall scheduled

02/23/2016

Completion of outside 75% complete, project moving forward.

02/09/2016

Siding installation has begun, HVAC rough in, along with buttoning up for insulation. Projected end of March completion.

01/26/2016

Construction phase, moving to interior insulation and drywall.

01/12/2016

Project moving forward with no difficulties. Weather has not played a factor in slowing down as of yet.

12/29/2015

On the rental market, units ready for move in.

12/15/2015

The property s moving along rather well, framing, concrete, trees and closing up of the outside is complete. Siding and final closing of the outside will begin Dec 22 and should be complete within a week. We will then begin the push to insulate and drywall.

12/01/2015

This 4 unit building plan has been completely changed. We have removed and framed each individual unit to accommodate 2 bedrooms, 1 bath laundry room, living area and open concept kitchen. All framing has been completed and we are in the process of having all mechanicals revamped to meet upcoming inspections. trees have been removed from the property to accommodate the parking area. The outside of the building is expected to be completed and closed up by November 29th. Once clearance is granted from the city, insulation and drywall will begin. Project is moving in the right direction and do not anticipate any unforeseen issues.

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

I was unable to get confirmation on the actual status and scheduling for an inspection but just from my visual inspection a couple of days ago, plumbing rough in appears complete on the UL and about 50% done on the LL. The plumbing work has taken longer than we anticipated. We are behind schedule on the siding install due to delays with the sub. All else on the interior is hinging on the plumbing getting completed and passing the rough in inspection.

09/22/2015

Finally secured a plumber and pulled the plumbing permit. Plumber is currently doing all his rough ins and we anticipate to be ready for a city inspection tomorrow (Wednesday). If approved, we have a drywall crew scheduled to start hanging on Thursday. Once we close up the walls, we can rapidly move along the remaining interior work. close

02/27/2015

Date of Purchase