Multifamily BRRRR in Boston, MA

[Eamon M. Keane]

Investment Info:

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

Purchase price: $550,000

Duplex multifamily with full basement in Boston MA. The property is fully rented and cash flowing extremely well. We are going to use the BRRRR strategy to fix up this property, continue renting, and increase its value from $750,000 to nearly $1.1 Million and refinance to either pay down other property loans or reinvest into a short term rental Airbnb property. Estimated rehab is estimated to be around $175,000.00.

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

I want to invest in flips and rehabs in the future as I grow my wholesaling business.

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

I have been managing this property for my family for a couple of years. They are not real estate investors or in the industry. I offered to take lead on the project and we are partnering to maximize its value, increase the rental rates and eventually leverage the equity. The goal is to help my mother build her portfolio so she can retire early and have a lot more income in the next 5 years.

How did you finance this deal?

Financing in place under existing loans, will eventually refinance the deal and lower the interest by nearly 2 years. Partnered with family so we didn't need to modify anything.

How did you add value to the deal?

Increased rent roll and will eventually fix up the place

Lessons learned? Challenges?

Working with family is very difficult but also has been rewarding to share my knowledge and insight and help them build a lot of equity and help grow a portfolio.

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

Yes, working with a solid GC that has been referred over but yet to see how the project will turn out. Confident in his work based on my partner's recommendation.