Successful BRRRR in Fitchburg MA

[Jonathan Bombaci]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Fitchburg.

Purchase price: $375,000
Cash invested: $75,000

Contributors:
Matthew Perimian

6 family buy and hold in Fitchburg. Gross rents are $4150 per month but gross potential rent is over $6000 per month. This property will be a cash cow once it is stabilized.

JDCU did the commercial mortgage with 25% down at 3.5% but we negotiated a $17,000 seller credit which helped offset the downpayment a bit.

We just refinanced the property just 1 year later and it appraised at $575,000 with gross income up over $6800 a month. We got 80% LTV financing st 5.0% on a 5 year arm and pulled our over $150,000 which makes this a VERY successful BRRRR…

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

Bought it at a great price on a main road in a market we know very well.

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

This was a pre-mls listing. Agent was going to bring it to market but got intouch with us first since we’ve done other deals with them. Some of the tenants were rough and they were nervous about an open house. We negotiated a deal that stopped them from going to mls.

How did you finance this deal?

Bank financing and refinance as well with local credit unions

How did you add value to the deal?

Increased rental, renovated apartments, updated and secured the common areas.

What was the outcome?

Very successful BRRRR in a 1 year period.

Lessons learned? Challenges?

Stick to the math. Even when you doubt how things are going if you do the math right it’ll guide you in the right decisions.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes we have a full service team that operates in MA and NH. We’re licensed agents and have an in house management company.