Rental Remodeling Business Plan Leave a comment

Victorian Renovations (VR), a start up company, was created to fulfill the growing demand for vintage homes that have been restored in downtown Portland. The company’s initial focus is on one building at Fifth and Pearl. This building is currently being purchased. Doug Machen and Sarah Renner are the owners of the business and have extensive experience in renovating houses. They also graduated from the University of Portland MBA program. For larger jobs, external contractors may be employed but Doug and Sarah will complete most of the work.

After the house is completed, it will be rented out. The income stream from the rental will pay the mortgage and finance the purchase of another property downtown. The property at Fifth and Pearl is expected to be rented for a high-priced rental and generate substantial cash flow to fund future projects.

1.1 Mission

VR’s mission is to build abandoned houses in Portland to improve the appearance and financial viability. The properties will also be rented out to generate income for future investments. The company will build unique homes that appeal to the most discriminating renter, who is willing pay more for a better quality home. VR aims to be highly visible in the property development industry.

1.2 Objectives

The main objectives of VR are:

• To receive investor funding to renovate and purchase a four-bedroom residence on Pearl and Fifth, in the Hawthorne District Portland, Oregon.
• To complete renovations on the four bedroom victorian residence, to convert it into two 2-bedroom units by October 2001.
• To rent out the residence to generate enough income to pay off the mortgage and make additional income for future endeavors.
• To purchase another residence for renovation immediately thereafter.

Success Keys 1.3

The key to this project’s success will be:

• To complete renovation work on time and within budget.
• To find rental occupants for the building before renovations are completed or as soon as possible after completion.
• To maintain an average 80% occupancy rate each year.