4 family flip to s Househacker

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $332,000
Cash invested: $67,000
Sale price: $445,000

Purchased this great 9 bed 4 family at a discount. 3/4 units were rented so we increased the rents on them and replaced the timber supports on basement with concrete filled steel supports. Then improved the vacant unit to attract a Househacker and put it on the market. The cool thing about this one is the rents from 3/4 units actually the building cashflow positive so our monthly holding costs were negative which is HUGE when doing a flip.

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

We work with almost exclusively multi-family and he’ll househackers buy property in MA and NH. This property was underperforming based on current rents but we knew we could increase rents, make it fha ready, and someone would be able to live for free in 1 unit while we made some profit

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

Was on mls

How did you finance this deal?

Commercial financing with a local credit union

How did you add value to the deal?

Made fha ready and increase rents so it would pass the self sufficiency test

What was the outcome?

Successful flip and we got to help a Househacker get started in real estate. Win / win right there!

Lessons learned? Challenges?

It was on a main rd and off street parking was tough this drove away a few potential buyers

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

Yes worked with my team, Candor Realty, Jeanne D’ARC credit union, and Doug Mercurio’s office in North Reading