Victorian Renovations, a start-up company, is being created to satisfy the growing demand for unique and restored vintage homes downtown Portland. Initial focus of the company is on one building on Fifth and Pearl. It is currently in the process to purchase. The house will be renovated by the two owners of the business, Doug Machen and Sarah Renner, both of whom are experienced in house renovation and both of whom have graduated from the MBA program at the University of Portland. Although Doug and Sarah will do most of the work, larger jobs will be done by external contractors.
The house will then be rented and the income stream used to pay the mortgage, as well as to finance the purchase and renovation of another property in Portland. It is anticipated that the Fifth and Pearl property will be rented at a high cost and produce significant cash flow to finance future projects.
The mission of VR is to develop rundown houses in the Portland area, to improve the look and financial viability of downtown Portland, and rent those properties out to provide a stream of income for future investments. VR will create unique homes for the discerning renter who is willing and able to pay more for a high-quality home. VR wants to be seen as a prominent company in the property-development market.
Here are the main VR goals:
- To get investor financing to purchase and remodel a four-bedroom home on Pearl and Fifth in Portland’s Hawthorne District.
- Complete renovations to the four-bedroom Victorian home and conversion into two 2-bedroom apartments by October 2001.
- Rent out the property to generate an income stream that can pay the mortgage and add income for future projects.
- To buy another house for renovation immediately after.
1.3 Keys for Success
This project is a success because of the following:
- To complete renovation work on time and within budget.
- To find occupants to rent the building in case of renovations.
- To maintain an average 80% occupancy rate each year.
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