Multifamily Flip success in Fall River

[Gualter Amarelo]

Hello All, I want to share the details on my most recent multifamily Flip in Fall River, Massachusetts. I purchased this 4 family for $125k off MLs, spent $61k renovating the new roof, vinyl, windows, plumbing electric, then standard paint and flooring job. The house was renovated in 2 months on the market for 11 days and closed 5 months from the date of purchase for $268k. This allowed me and my investors a $70k profit after the commissions for the agents. Over all the project was worth it and I had 3 of the four units rented out for $850 each 3 months into the project, which basically took care of the carrying costs of the building. My partner and I have just purchased another 3 family to run the same strategy and have three other buildings uag. The best part of this strategy is that it is relatively recession proof. If the market turns we can still cashflow and refinance out of our hard money loans!

[Gualter Amarelo]

@Andrew Ross The time frame was 2 months of renovtion (only because we ran into some major plumbing delays). Then we had on of the units rented 3 months and the other 2 units rented for 2 months as we finished them. The biggest delay was waiting for the buyers financing. Also because we improved the property over 100% we had to pay for a second appraisal for FHA... But I negotiated keeping the rest of the rents for the month to cover that cost and then some.

The three family we are working on right now is a quick change of zoning and a very small renovation to go from mixed use to full residential. This house was on MLS, but undesirable because it is zoned commercial/mixed use and can't get financed with less than 25% down. We will convert and sell to an FHA or conventional buyer.

@Aaron Araujo My man! You know we are looking to add some partners to our deals right now so it might be a perfect fit. Give me or @Ron Boling a call and we will see if we can work you into one of the deals we have on the table.

Thanks @Robert Blanchard, great questions. This was an hour south of Boston in the SouthCoast market near Rhode Island. I did absolutely no part of the renovations, (other than rip up one carpet, because my girlfriend at the time wanted to do a project, lol) I strongly discourage anyone from doing the work yourself on a project of this size. As far as down-payment, I put none of my own money into this deal.

My friend was buying the house for themselves and put $5k down on the house. Her financing fell through and I was her Real estate agent, so I offered her $5k to purchase the contract from her to be paid when I sold the house. She agreed, and I took on a private money partner for a 40% share in the profit. When we closed my partner made $29k, my friend got back their $5k plus the $5k for the contract and I walked away with $31k and a story to tell. 

Also, my contractors got paid for the work and I kept management of the building after the sale for the current landlord, so my property manager is getting some residual from the deal. All in all it was a great project!

Cheers to our success!