Livin' La Vida Luna y Luna
We had to make a trip to Puerto Rico after the Super Bowl to see what all the fuss was about. Summa y'all be trippin' - that place is GREAT! 🇵🇷
...Should have taken more photos.
Introducing Project Townsend Part-Deux 🏡
It finally happened. I'm buying a second house on the same street. I'll refer to this one as Project Townsend II to avoid any confusion.
The way this deal came about was bittersweet for multiple reasons.
First of all, the neighbor did NOT reach out directly to us. Despite the fact that we've been there every day for the past ~6 months, they called someone else.
That someone else happened to be an old partner of mine. One of my old partner's teammates recently lost his mother. So I was calling to find out his address so I can send something. After getting the address, I asked if they were working on anything interesting.
They told me they had the neighboring home under contract and offered it to me at ~10% more than what I paid for Project Townsend. I hemmed and hawed before acquiescing. They assigned the contract to me ~24 hours later.
Lather, Rinse, Repeat
We're combining floor plans from Project Kice & Project Townsend to give the market a slightly different flavor of the same product.
There's also an in-ground covered pool towards the rear yard setback line. We didn't even know that was there until we got our survey.
Hopefully, the pool is salvageable. I think families in this particular market pay a premium for homes with big flat backyards so they have the option of putting a pool in.
The other good thing about the existing pool is its location. It's a good ~75 feet off the back of the existing home, which means it won't be disturbed at all by our construction process.
The Numbers:
Let's quickly run through the numbers here.
We'll start with three buckets of expenses and end with our expected After Repair Value.
Acquisition Costs:
Our purchase price is $885K. After closing costs, prepaids, and fees, we'll be all in for ~$940K.
Cost to Build:
We're building a 7 bed, 7.1 bath, ~7,000 square-foot home (including basement). At $135/ft, we're looking at a build cost of roughly $945K. Our Hard Money Lender just dropped our rate to 9% so we'll pay them just under $100K in interest for the life of this loan.
Cost to Sell:
Between commissions, closing costs & assoc. fees, we'll spend just under $200K on the sale.
After Repair Value:
I'm underwriting this sale to $2,485,000 to stay under the 2.5% Mansion Tax mark. It's also what the Appraisal came in at.
COMP SET
Based on comps that recently went under contract (~past 30 days), we can realistically achieve:
- 2.55M - Conservative
- 2.6M - Base Case
- 2.65M - Aggressive
These 3 comps are similarly sized homes on larger lots. None of them come equipped with a pool.
What's Next?
The closing date is scheduled for Monday, March 16, 2026.
We already have our survey in hand. Our architect is drawing plans.
Our go-to hard money lender is ready to fund the majority of this deal, and it's looking like our private money is lined up as well.
🦆🦆🦆🦆
What I'm Working On...
