Issue #208.
That's 4(!!!) years of writing this newsletter without taking a single week off.
But who's counting?
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Livin' La Vida Luna y Luca
As if they didn't look like each other enough...
What a Week
Both kids got their flu shots this week.
Luca was fussy for a day or two. Luna really impressed me with her bravery. This was her first injection in the arm. Cried for less than 10 seconds and we were on our way.
Dia's cousin & his son had a multi-day layover in NYC while going home from Milan so we got to hang with them for one night and one morning.
Dia also went to her first Parent Committee meeting for the kids' school. She's the Class Parent for Luca's class.
At first, I made fun of her for signing up for that. Then I realized I was thinking small and stuck in my ways. My parents probably never attended a single PTA meeting for any of their 3 kids. They also never bothered to get to know our friend's parents. Dia's mom was the complete opposite.
My normal and Dia's normal on this particular subject are polar opposites, but I'm willing to learn and happy to have a front seat to the action.
Those were the personal highlights of the week.
Work wise...
Washington
✅ Final As-Built Survey complete
✅ Buyers submitted their deposit (10% of purchase)
✅ Appraisal complete (looks like we'll appraise for purchase price)
✅ Inspection complete (few minor issues, but should be taken care of by the end of this upcoming week
We're keeping a master list of pending items and although it's ~15 bullet points long, we should have no issue closing on time: October 23, 2023!
The buyers attended the inspection and according to my agent, they are absolutely thrilled with the home. They have a baby due in February so they can't wait to get in. Apparently, they're buying some of the furniture from our staging company!
Front & Fitz
This is the project where we converted a side-by-side duplex into 2 separate townhomes.
The final paint is complete for both units and we're templating & installing countertops this week.
My partner is telling me we'll be ready to list both units no later than 10/16.
All we're missing to establish our HOA is the Certificate of Occupancy.
Between the Zoning Variance upon purchase and Condo Conversion prior to sale, our legal bill on this project has been insane ($10K+).
Can't wait to share the listing with you here in a few weeks.
We're going to market at $650K on Front St (4 beds /3 baths) and $400K on Fitzwater (2 beds / 1 bath).
Those numbers are slightly below our initial projections, but this still makes for a profitable deal.
Catharine
We're nearing the end of our loan term with our private money lenders on Catharine so a refinance is imminent.
We had 4 lenders bid the refinance and one came out slightly ahead.
Two lenders (HX and DF) were able to do 7.5% interest only at 70% LTV, but DF pulled ahead because they're charging fewer origination points (.5%) and their step-down prepayment penalty is better than a flat 5% for 5 years.
Baltimore
"Funding secured."
Last week I wrote about my preferred hard money lender (Kiavi) rejecting this loan because they didn't believe in our After Repair Value.
This week, we found a new lender (IFC) to step in and provide us with 80% of the purchase price and 100% of the rehab for 1.75 points and 11% interest for 15 months.
We're going to need every bit of that loan term because this project is an absolute monster.
Here's the shell we're working with. 4 floors of living space (4 separate units) plus a basement that needs to be completely cleared out.
Nothing is salvageable. I'll spare you the details, but here's a shot of the basement that shows mold and the condition of the mechanical systems.
🤮 The demo and clean-out crew is going to absolutely hammer us. They're gonna need hazmat suits for this one.
Motel
Going to end with this...
There's a guy at my parents' motel who hasn't paid his rent since the eviction moratorium went into effect.
We were awarded an eviction a few months ago, but he somehow convinced the court to reverse the decision because his application was marked as Approved by the DCA website.
It's a well-known fact that DCA doesn't provide rent relief for motel guests.
His past due bill with us is >$36K.
He got a new car this week.
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