Fitchburg Multi-Family fix and flip to VA Househacker

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $205,010
Cash invested: $51,000
Sale price: $290,000

Purchased this brick 3 unit as part of a commercial package from a landlord who was retiring. Shortly after buying it the worst tenant moved out so we lightly renovated that unit and put it up on mls. We ended up selling it to a VA Househacker and since we had 2/3 units rented the whole time our holding costs were pretty low.

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

The portfolio we bought had some great properties in them, this wasn’t a great one from a cashflow perspective, we want more units, but we were able to improve it and sell it to a Househacker

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

MLS / Networking

How did you finance this deal?

Commercial loan through JDCU

How did you add value to the deal?

Renovated worst unit to make it appeal to a Househacker

What was the outcome?

Worked our work

Lessons learned? Challenges?

VA loans have some oddities to it. We had to spray for wood destroying pests before we could finish the appraisal.

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

Yes, Doug Mercurio was our attorney, JDCU gave us the $$, and Simplified Management managed the tenants during the transition of ownership.