Call us: +1 858-255-1012

2016 Berkley

Before Rehab

IMG_0963
« 1 of 25 »

 

Rehab Update

2016 Berkley (25)
« 1 of 25 »

Details:

Address: 2016 Berkley Pl, South Bend, IN 46616
Property type: Class B, Single Family Home
Purchase Price: $31,589
Rehab cost: $44,500
ARV: $115,900
Date of Purchase: 08/24/2015
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
2016 Berkley Pl, South Bend, IN 46616Class B, Single Family Home$31,589$44,500$115,90008/24/20156 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:

03/2017

Refinancing complete.

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.

06/07/2016

Refinancing will begin within weeks with Colony American Finance. We are just waiting on the 4-plex at 226 Cleveland, which is nearing completion.

05/03/2016

Complete and Rented

03/08/2016

Rented

02/23/2016

Project complete, rented.

02/09/2016

Complete with tenants.

01/26/2016

In last stages of completion for rental February 2016.

01/12/2016

Unit moving forward with tenant move in scheduled for February 1, 2017.

12/29/2015

Winding down to completion, home has been rented for move in February 1, 2016.

12/15/2015

Design changes have been made, drywall finish is being completed in the basement. Kitchen will be the next step. Target end of January for completion and into the rental market mid January to pre rent.

12/01/2015

Drywall finish has begun, outside of unit is being finalized prior to the snow. Once drywall work is completed, kitchen will be finished along with floor refinishing. Unit is tentatively scheduled to be complete December 30, 2015.

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

– Framing in basement completed. Added a living room, laundry room, half bath and bedroom. Installed an egress window in the basement bedroom – Framing for master suite completed. Added a full bath and walk in closet – HVAC guys installing a new furnace, central air conditioning unit and water heater and associated heat runs – Plumber in this week for the rough ins – Electrician has wired all the newly framed spaces

09/22/2015

Demo underway and mostly complete. Kitchen and upper level have been demo’d. Basement walls have been drilocked for moisture prevention. The layout for the portion of the basement we are finishing is complete and has already been about 95% framed for a bedroom, living room, laundry room and full bath. Electrical permit has been pulled.

08/24/2015

Date of Purchase