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 several bidders.
How did you finance this deal?
Construction loan with Lowell 5 Bank (regional bank).
How did you add value to the deal?
We did a complete gut rehab. We sprinklered the whole building which allowed us to remove the rear egress stairs, which allowed us to pick up an additional 60-70 sq. ft. per unit which became the en suite bath and walk in closet for the Master BR.
Lessons learned? Challenges?
Keeping tabs on GC, not letting payments to subs get ahead of their work (plumber bailed on us), check the sewer connection.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ellen and Janis from Compass are our JP agents.
Lowell 5 Bank is our go to construction lender
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