44 Blanchard St. Gardner, MA 01440
Purchase price: $125,000 Wholesale Fee: $15,000
Under Agreement For: $260,000
Renovations: $55,770.40
Projected Profit: $46,354.09
Total Time: 95 days (6/15 – 9/20/2020)
Purchase Price to ARV: 53%
‘All In’ to ARV: 75.29%
Town Rating: ‘C’ town
Target Buyer: First time homebuyer or someone downsizing
How did we find it? Introduced to us by a flipper in Boston
How did we finance it? Cash. Pandemic complicated our financing with our standard lender, we loved the project and wanted to complete it quickly so we decided to purchase the property in cash. This also meant that we had to pay for the repairs in cash.
Issues Along the Way: We lost our painter. He did a great job with the exterior and did the big items inside the house (ceiling & walls) but we ended up stepping in and completing some of the hallways and bathrooms.
Rules:
- Know your numbers. Before the project & during the project MAKE SURE YOUR COMPS ARE ACTUAL COMPS & TRACK YOUR NUMBERS ALL THE WAY THROUGH YOUR PROJECT
- Buy at or below 65% of ARV THIS WILL GIVE YOU ENOUGH ROOM TO RENOVATE WITHOUT USING UP ALL OF YOUR EQUITY
- Be ‘all in’ for less than 75% of ARV IF YOU FAIL TO SELL THE PROPERTY, YOU WILL HAVE ENOUGH EQUITY TO REFINANCE & RENT OUT THE PROPERTY TO MITIGATE YOUR LOSSES
