BRRRR in Massachusetts

[Jonathan Bombaci]

I am an active real estate agent in MA and finding BRRRR deals are tough in this state right now. Boston drives a high cost of living and the real estate market has been a strong sellers market for a very long time. We recently came across a potential BRRRR deal in Methuen (right outside of Lawrence and Lowell) and thought sharing the details might be helpful for others looking for similar deals.

Description: 2 family in good shape currently owner occupied in Methuen. It is vinyl sided, newer roof, has parking for 3 cars and has a garage

Buy - $315,000 – ARV $450,000 - $500,000
Renovate - $30,000 - Kitchen, floors, Paint
Rent - $1600-$1900 each apartment = $3200 - $3,800 per month
Refinance – 80% of $450,000 = 360,000 
Repeat - Do as many as you can!

We have a really good relationship with a local credit union and I'm confident that we'll get 80% LTV on the refinance but even worst-case scenario at 70% LTV owning a $435,000 multi-family and only having $47,500 into it isn't a bad deal. That being said we'll share the results once we complete them. We're closing on Friday!

[Zac Ballin]

@Jonathan Bombaci awesome deal and great work! Would you mind plugging the credit union or messaging it over? I’m going to shop to refi a couple this winter.