Updated over 2 years ago on .
2 Unit Luxury Condo Development in Newton Massachusetts
Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $985,000
Cash invested: $1,638,784
Sale price: $3,305,000
Purchased a 2 family and re-developed it into 2 luxury condos. Each around 3k sqft with 5 bedrooms & 4.5 Bathrooms. ROI ended up at 25.96%.
What made you interested in investing in this type of deal?
Potential returns when underwriting the project.
How did you find this deal and how did you negotiate it?
Off market.
How did you finance this deal?
Bank debt from a local bank.
How did you add value to the deal?
Constructed two new luxury condos.
What was the outcome?
Both units sold above our proforma numbers.
Lessons learned? Challenges?
Market appreciated which raised the sale prices of each unit. But with Covid that also drove up some of the costs. Mainly lumber which jumped up quite a bit while we were framing.
