Fix and Flip Case Study - Buying right and avoiding delays with the city

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $307,500
Cash invested: $54,200
Sale price: $510,000

Project Overview
51 Cumberland was a two family in Manchester that we bought through a wholesaler. On first look, it was hard to even understand the property because it was packed with clutter. There was so much stuff inside that most buyers could not clearly see the condition of the building.

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

We put it under contract with a simple agreement. The seller could take whatever they wanted, and we would handle clearing out the rest. They ended up removing quite a bit themselves, which helped. Once we cleaned everything out, the building turned out to be in much better shape than it looked.

How did you add value to the deal?

The Problem We Were Solving
There were really two challenges here. First was perception. The clutter made it look worse than it was. A lot of buyers passed because they could not see through the mess. Second, the property had been used as a single family for a long time, even though it was legally a two family. We needed to work with the fire department to reestablish proper separation and safety barriers between the units.

What was the outcome?

The Results
After clearing out the property, we realized it needed very little work. We cleaned it up, addressed the safety and separation requirements with the fire department, and made the updates needed to ensure it was clearly a legal two family again. We approached the city collaboratively, not defensively. We put in what was required to make the building safe and compliant. That made the process smooth and avoided unnecessary delays.

Lessons learned? Challenges?

Key Takeaway
Sometimes the opportunity is hidden behind clutter. If you can see past the mess and buy it right, you can create value without major renovations. The second lesson is about working with the city. Even when something is technically legal, cooperation goes a long way. Fighting building or fire officials usually slows everything down. Solving the problem with them instead of against them keeps projects moving.