BRRRR in Fitchburg MA

[Jonathan Bombaci]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fitchburg.

Purchase price: $130,000

Bought this 2 family property in March 2021 for $130k. It was right on MLS and it was in really good shape but the tenant on the 2nd floor wasn't paying rent and the owner was unsuccessful evicting them. There were a tota of 1 photo of the property for the listing, which I included. It's crazy to me why listing agents only put up a single photo, it makes people think the interior is trashed which it was not. This worked in our favor on this property.

We bought it in CASH since due to needing to close quickly. We helped get the tenant approved for RAFT and they paid all past dues rent plus all the way through December of 2021. We updated the heating system and collected $1800 per month in rent with no mortgage going on 8 months now so we cashflowed about $1200 per month. We just finished a refinance at $175,000, 75% of $275k brings back $131k to us. The monthly income offsets our closing costs and the refinance brings back 100% of our initial capital. Gotta love a nice little BRRRR

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

We own a few multis in Fitchburg already and someone brought this to me. The non-paying tenant was a problem for a lot of buyers but wasn’t a huge concern for us.

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

MLS - where there are no good deals ;)

How did you finance this deal?

Cash - the credit union for the refinance

How did you add value to the deal?

Fixed tenant issue

What was the outcome?

A true BRRRR which is difficult to do in MA these days

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

I am a real estate agent and my team, Candor Realty, focuses on investment properties in MA and NH. We have a great network of investor friendly lenders and attorneys. Then we used our in house property management company, simplified management, to manage the property.