Fire damaged Rehab - potential BRRRR

[Jonathan Bombaci]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $80,000
Cash invested: $50,000

We purchased this vacant fire damaged 8 unit in Gardner MA from a wholesaler. We financed it with $650,000 worth of construction costs and the ARV appraisal came in at $1,100,000. It'll be 8 2-beds apartments which we can rent for $1500 each. So gross monthly income of $12,000 and should be a full BRRRR. Permits are approved and roughs are all in we should wrap this up by the end of July.

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

Numbers were good and we were looking for an “almost new construction project” to learn with.

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

Wholesaler brought it to us.

How did you finance this deal?

Hard money construction loan.

How did you add value to the deal?

Got permits and approvals to restore the 8 unit at the property

What was the outcome?

Work in progress but so far it’s going great.

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

Yes we have a great lender and great real estate attorney on this one which helps. Plus our in house management company and construction team are overseeing and stabilizing the project.