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. We helped get the tenant approved for RAFT and they paid past due rent plus all the way through December of 2021. We 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 ;)

There was only 1 photo on mls and the top floor tenant was not paying rent. The previous owner was unsuccessful evicting them due to the moratorium which scared away all other buyers.

How did you finance this deal?

Cash initially since it was a dad close - then to a local 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.