When the Least Expected Happens, Adapt and Overcome

[Joshua Poitras]

Investment Info:

Small multi-family (2-4 units) fix & flip investment in East Boston.

Purchase price: $650,000
Cash invested: $196,080
Sale price: $806,500

Contributors:
Mo Maruping

A planned buy and hold turned condo conversion. After filling out a permit wrong we triggered a city of Boston ordinance of having to require a sprinkler system put in. Rather than just correcting the permit, we went ahead with the sprinkler system and decided to split the building into three separate condos. After paying contractor overages and extremely high hard money fees and payoffs. We about broke even. However, the experience has given us an infinity return.

What made you interested in investing in this type of deal?

Interested in applying the teaching of Armando Montelongo. Originally wanted a buy and hold. I wish we attempted to refinance out of the deal and rent the units out instead. You live you learn.

How did you find this deal and how did you negotiate it?

Off Market from a realtor

How did you finance this deal?

Personal Investor using his 401K with Hard Money

How did you add value to the deal?

Gut Rehab

What was the outcome?

Sale of 3 Condos and a break even.

Lessons learned? Challenges?

Next time, I will fill a permit out completly. And next time consider renting and holding for awhile if the numbers only break even.