Typical Luca: Fought tooth and nail for 5-minute Disney Stories & barely paying attention.
Typical Luna: Desperately wanted to read something else, but completely locked in.
Introducing Project Kice Part Deux
It's very easy to over-complicate things when trying to acquire your next deal.
- Let's ramp up social media
- Let's blast out direct mail
- Let's hire cold callers
- Let's pour money into PPC
Kice Part-Deux was the complete opposite. All it took to get a seat at the table was knocking on our neighbor's door and asking if they were interested in selling their home.
Lather, Rinse, Repeat:
There's no need to recreate the wheel here. We sold Project Kice above our asking price pre-completion, so we're running it back.
We'll change the color of the home and maybe a few features of the front elevation so they don't look exactly the same. The guts and bones will be almost identical.
The Numbers:
Let's quickly run through the numbers.
We'll start with three buckets of expenses and end with our expected After Repair Value.
Acquisition Costs:
We're paying $805K for the dirt plus another ~$30K in acquisition fees, bringing our total entry basis to $835K.
Cost to Build & Carry:
Our construction budget for 7,000sf (total including basement & garage) is $1,050,000.
Our carrying costs will be an additional $110,000, bringing our total OpEx to $1,160,000.
Cost to Sell:
Sales costs have ballooned all the way up to a very meaningful 9% of the sales price. There's a huge tax to pay if you want to play this game, but I guess it's worth it?
After Repair Value:
We estimate a sales price of $2.6M, equivalent to what we achieved on our current Project Kice.
Our lender's appraisal is a bit more bullish than us 😅
Let's see what happens. It feels like we're in a good position here. I don't expect to outperform this estimate, but I guess it'll mostly come down to market timing and inventory levels (which I predict will be somewhat high).
What's Next?
We close on June 15th. Plans are almost finalized. Funds are ready. The home is vacant. We're ready to rock. 🤘🏽
✌🏽 ❤️
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