New Year = New Listing or BRRRR

[Jonathan Bombaci]

New Year = New Listing or BRRRR!

We purchased a 3 unit in Rochester NH in 2022 from a wholesaler we know with the intention of flipping it. The property had been vacant for over a year and it needed over $100,000 of work. 

All 3 units are now completely renovated, vacant, and ready for the new owner. We have a couple of leases ready to go so if it doesn’t sell in a couple of weeks we’ll rent it out 2/3 units to carry all of our expenses.

I love flipping multi-families because if we don’t get our number within a month we’ll just rent out all 3 units for a gross monthly rents of $4,700, refinance it, get all of our money back, and then add it to our growing Seacoast NH portfolio.

We essentially operate a Flip to BRRRR strategy on our flipping business so our backup plan on any flip is to refinance and keep it. We aim to flip 2-4 unit buildings then we have a buy and hold company that targets 5+ unit buildings and a syndication company that targets 50+ unit buildings. BRRRR is a big strategy imbedded in each of our businesses sometimes it's Plan A other times it's Plan B or Plan C but it's bailed us out more times than I care to count.

Once this sells Or if we pull it down and start our refinance I’ll share the numbers here so people can see how much money we pull out or how much money gets trapped in the deal.

[Justin Hammerle]

Nice deal!  Also really like your approach and strategy here with having essentially two business lines one supporting the other from a capital and risk standpoint.