Our Portsmouth 4-unit was listed at $1.2M. The purchase price was a win, but the condition of the building is what will determine whether the deal works. Most people celebrate the purchase price. We closed on our Portsmouth 4-unit at $875K, on a building listed at $1.2M. That's a good number. But on closing day, while walking every unit with my contractor, I said something out loud that I think every investor needs to hear: We got the place for the price we got it because a lot of it was just wrong. What the Discount Was Paying For Here's a partial list from one walk-through: the steam heat is probably weak, there's knob-and-tube wiring in the basement that we need to verify, and the basement is damp. One joist needs sistering, a half bath doesn't meet code clearances, birds have torn through window screens, and some windows need replacing. One kitchen needs a full gut, and one bathroom doesn't even have a shower head. None of that is a surprise to the seller. It's part of why the price was the price. The discount wasn't free money. It was the market accounting for the work, uncertainty, and cost that came with the building. Our job now is to make sure we don't give that discount right back through the renovation. How We Sorted It We went line by line with one question: Superior quality, repair, or leave it as is? Stone counters made the cut for a superior finish. Cabinets in one unit are getting refreshed instead of replaced. We decided a dishwasher in the galley kitchen wasn't worth giving up cabinet space. The tub gets reglazed, and raising the studio ceiling would cost about $30K, so that's probably not happening. Some things aren't optional. The fire alarm system, code items, and structural work are non-negotiable. Those are part of making the property safe, functional, and compliant. The rest of the scope needs to be evaluated based on what it adds to the finished product. Our basic scope is $225K. That number only holds if we're disciplined about which items get upgraded. Every "while we're at it" decision adds cost, and on a flip, every dollar over budget comes straight out of the profit we're working for.

I PROMISE! I will be there today! See y'all then!

Hey all! Wanted to put a feeler out there to see what everyones thoughts were about the incoming Fall market and how you think it will impact this winter season. We just saw the fed increase rates > how much of an effect do you think this will have?

Met with @Jack Pinard today and talked about an interesting topic. Portfolio buying. he went direct to seller. If an owner offers to sell you 1 property but unveils they have a portfolio. Do you tackle just ONE property or try to go for the whole thing? What would you do.

I attached the reports. Hopefully, you learned something!