Investment Info:
Small multi-family (2-4 units) fix & flip investment in Jamaica Plain.
Purchase price: $1,400,000
Cash invested: $450,000
Sale price: $2,230,000
Three family complete gut rehab. The GC we used that was subpar in communication and execution so the project dragged. We also had a plumber abandon the job (ask me for his name), which caused us a two month delay...The project came on the market in the winter of 2018/2019 which was a horrible time for the market. We let things marinate and the market turned around in the spring. This wasn't a home run for us, but a solid base hit with a product we were very proud of at the end of the day.
How did you find this deal and how did you negotiate it?
It was on MLS. We were one of many bidders. We offered over asking with no contingencies (no inspection or financing contingencies).
How did you finance this deal?
We used a local bank, Lowell 5, for an acquisition + construction loan.
How did you add value to the deal?
Complete gut. We sprinklered the building which would have been required anyway, but this allowed us to eliminate the rear egress staircase which eventually became the en suite bath and walk in closet in the master bedroom.
Lessons learned? Challenges?
Stay on top of your GC and subs. Don't get ahead of paying any of your subs unless you really know and trust them. It's a good idea to look at sewer footage to make sure you won't need to replace the sewer line (that was a last minute surprise for us).
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ellen and Janis from Compass are our go-to agents for JP.
