Project Overview

We purchased 31 Sawdy Pond Ave in Tiverton, RI on May 22nd, 2019. A foreclosure, the property was in dire need of repair. We saw solid potential to use the BRRR approach (Buy, Rehab, Rent, Re-finance) to achieve above average returns once stabilized. Things we liked about the property.

• Allowed non-conforming use as a multi-family.  Essentially this property had one single family (3BR) structure and a cottage that could be used as a separate dwelling.  Each building had its own utilities.
• Location.  The property was in a terrific location with easy access to amenities and highways.
• View overlooking a pond.
• Shortage of high quality, affordable rentals in the area

Value-Add

Our team completely rebuilt this property. We tore down the roof on the main house and re-built it from the foundation up. Our construction team framed the building, adding a new bedroom and bath for a total finished product with 3BR and 1.5BA. Everything was new. Floors, doors, windows, 200 amp electrical service, plumbing and appliances. The cottage was gutted and renovated in similar fashion.

Investment Highlights

We purchased the property on 5/22/19 for $144,623 with a 5/1 ARM, 1-yr interest only construction loan at 4/125%  Sold the property for $465,000 on 11/03/20

• CapX spend – $190,000
• Stabilized CoC return – 54% during hold period.  We were able to achieve this with rents at the higher end of market value due to the high quality of the units. 
• $107,609 net profit at exit