Atlanta- Quadplex to Single Family Conversion

Discussion in 'Renovation & Home Improvement' started by 380, 6th Jan, 2017.

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  1. 380

    380 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,353
    Location:
    Australia
    What : Converting existing Quadplex to Single Family Residence- SFR

    When: Start Feb2016. Projected Completion: end of April-May -2017

    Where: Atlanta, Georgia US - within 10 miles of Downtown - right next to proposed beltline

    Why: - in this one why NOT??

    We had two options:

    1. keep existing quadplex as it is and spend $10k fixing it up for rent ready- and it would have netted us USD$12K a year

    2. Convert Quadplex in to SFR

    We went for SFR option. $12k a year sound great - but quadplex means 4 times more drama of tenants, etc.

    plus we hold Single Family Residence on same street for Cash Flow +Growth + manufacturing equity deal.
    (Will post on it on other thread a later date)


    Project Numbers:

    Buy; $115k
    Rehab ; $65k
    Misc ; $10k
    Sell cost; $18k

    Total cost ; $203k

    Projected Resale: $245k - $265k (based on current comps)

    Expected Profit: $42k -$62k

    All $ Value in USD
     
    Last edited: 6th Jan, 2017
    380, 6th Jan, 2017
    #1
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  2. 380

    380 Well-Known Member

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    Location:
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    Draft 5 Bedroom plan.png


    Initial Draft Plan!

    it is a big house.
     
    Last edited: 6th Jan, 2017
    380, 6th Jan, 2017
    #2
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  3. 380

    380 Well-Known Member

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    Elevation.JPG
     
    380, 6th Jan, 2017
    #3
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  4. 380

    380 Well-Known Member

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    IMG_5004.JPG IMG_5005.JPG IMG_5006.JPG

    We ended up keeping this as quadplex.

    3 x 1 bed,1 bath
    1 x 2 bed,1 bath

    Total Asset cost is $205k

    $670 per month x 3 = $2010
    $750 per month x 1 = $750

    Total Rent = $2760 per month

    X 6 month rent (PM cost + Rates + insurance + vacancy + cost of funds)

    $16560 (approx) net rent


    8% Net yeild

    All Amounts are In USD!


    Full video here

     
    Last edited: 25th May, 2017
    380, 25th May, 2017
    #4
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  5. 380

    380 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
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    Location:
    Australia
    Renovation work done:

    Exterior /internal lPainting
    New electrical
    New walls
    Paint
    Electrical/ plumbing fitouts
    New floors
    Few new windows
    Decking
    AC
    Appliances
    Water heaters

    Units will be ready in a week time!
     
    380, 25th May, 2017
    #5
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  6. larrylarry

    larrylarry Well-Known Member

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    Location:
    Sydney
    Looks like a great buy! So why decide to go quad and not SF? I suppose if you have a good PM issues should be kept to minimum.also why not rehab the building behind? Not cost effective?
     
    larrylarry, 5th Jun, 2017
    #6
  7. 380

    380 Well-Known Member

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    Location:
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    Quad - we can keep asset (cashflow and CG)

    SFR - have to sell it - rent won't get required ROI
     
    380, 5th Jun, 2017
    #7
  8. 380

    380 Well-Known Member

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    Location:
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    Its difficult to source multi units, everyone wants these, if and when we secure these we aim to hold for cash flow.

    These are all in the Atlanta Beltline so we are seeing continued growth.
     
    380, 5th Jun, 2017
    #8
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  9. 380

    380 Well-Known Member

    Joined:
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    Posts:
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    Location:
    Australia
    Have not posted for some time.

    We just sold this project (quad)

    We placed it on the market approximately 3 weeks ago, we received 10 offers in the first week and accepted a cash offer of $342,000


    Project Numbers:

    Buy: $115,000
    Rehab: $76,046
    Misc: $10,000

    Link for those interested in the project
    1171 Sells Ave, Atlanta, GA 30310



    Total cost : $201,042

    SOLD PRICE: $342,000

    Profit: $149,958 (43% return)

    All $ Value in USD
     
    Last edited: 3rd Dec, 2017
    380, 2nd Dec, 2017
    #9
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