Purchase Date: October 13, 2016
Purchase Price: $66,000
Current Value: $585,000
Current NOI: $51,659
Renovation Cost: $150,000
Farnam Realty Group is proud to present our first ever case study on a home run real estate investment here in New Haven. This owner seldom sells pieces of their portfolio, so rather than a “fix and flip” we refer to these cases as “Value Adds” since there’s no sale planned on the back end.
Purchased in 2016, the buyers completely transformed this home in the Science Park neighborhood of New Haven. They brought it down to the studs, converted the attic to a 1 bedroom apartment by adding a staircase as a second means of egress, and replaced EVERYTHING. All new mechanicals, all new appliances, new roof, siding, windows, etc.
“The trickiest part of the project was adding the second staircase so we could make the 3rd floor another unit,” states the Owner. “We had to cut through 100 year old floorboard, shore up the joists, design around the whole thing…we got it done though in the end and all that expensive carpentry was worth it.”
Listed at $55,000, the owners saw the potential in this Short Sale the day it hit the market and submitted a strong offer over asking price.
The property located just off of Winchester Ave faces Science Park, an up and coming collection of startups and established biotech companies that was created in a collaborative effort between Yale, the City of New Haven, and the Olin corporation.
Besides its proximity to Science Park and Yale, the high rents at this property are also driven by improvements made with the tenants in mind. Air conditioning, laundry in-unit, and stainless steel appliances (including dishwasher) are all amenities that the owner knew would drive the rents up. If only the lot were bigger the owner could have completed the “4 horsemen of high rents” by offering off-street parking.
Winchester Ave hasn’t always had the greatest reputation, but Science Park has transformed the neighborhood. Investing in neighborhoods that are on the rise and knowing the pockets where tenants will pay strong rents, was the key to making this transformation possible.
Once the renovation was completed, all it took was some knowhow from the Farnam Realty team to secure the highest quality tenants. If you’re interested in Value Add projects like this, give the experts at Farnam Realty a call at 203-671-1924.
2021-2022 Rent Roll:
1st Floor: 3bed/1ba, $1,900
2nd Floor: 3bed/1ba, $2,050
3rd Floor: 1bed/1ba, $1,800