Fitchburg MA Single Family Flip

[Aaron Steeves]

Investment Info:

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

Purchase price: $105,000
Cash invested: $90,000
Sale price: $246,500

28 Phillips was a 2/1 that we converted to a 3/2. The property was beautiful, but it suffered a bit due to regression, the fact that it was located on a hill, and that the bedrooms were a bit small after dividing one to make it a 3/2. In the end, we sold the property and profited roughly $50,000. The flip should have gone quicker, but there was a manpower shortage and I was out of state. Luckily, the deal was cash, so we were not paying mortgage expenses or interest during the added downtime.

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

The low cost of the home compared to comparable sales in the area.

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

At the time, I was not yet an agent myself, and we used a local go-to agent. The property was bank owned and vacant, and the bank accepted our first offer.

How did you finance this deal?

Cash

How did you add value to the deal?

New kitchen, added 1B/1B, new roof and new interior finishes.

What was the outcome?

~50K profit

Lessons learned? Challenges?

Pay experts for their expertise ALWAYS
Only invest to the point of diminishing returns (i.e. do not put in a fancier kitchen than comps in the neighborhood
People are more scared of hills than they logically should be
Bedrooms should be >/= 15x15.

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

Giovanna Graves was my local agent