Fix and Flip Case Study - Vacant properties and how they hide mechanical surprises

[Jonathan Bombaci]

Investment Info:

Condo fix & flip investment.

Purchase price: $210,000
Cash invested: $29,192
Sale price: $338,000

Project Overview
144 Pinewood was a condo in Gardner that had been vacant for quite some time before we bought it. We purchased it at a decent price and expected to put about $30,000 into renovations before listing it. The plan was straightforward. Clean it up, modernize it, and move it quickly.

How did you add value to the deal?

The Problem We Were Solving
Almost immediately, the renovation budget started to shift. We originally thought we could save the existing heating and cooling system. That did not happen. We had to decide whether to fully replace the boiler, furnace, and exterior condensers or switch to a mini split system. After running the numbers, we chose to replace the furnace and repair what we could on the cooling side. We repaired one condenser and replaced the other.

What was the outcome?

Then we ran into another issue. Because the condo had been vacant for so long, getting the water turned back on became a problem. The shutoff was actually buried under landscaping that the HOA had installed. Coordinating with the HOA and the city took longer than expected. At one point, we had already finished renovations, listed the property, and even had it under contract before the water was officially back on. That added some stress to the transaction.

Lessons learned? Challenges?

Vacant properties can hide mechanical surprises. When something has been sitting for a long time, expect systems to fail once you start testing them. The other lesson is that small logistical issues can create real stress. Something as simple as a buried water shutoff can delay progress and complicate a sale. Even managing about 1,000 units across Massachusetts, New Hampshire, and Maine, we still run into these curveballs. The key is staying calm and solving problems one at a time.

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

We bought the condo in March and sold it in June. It took a little longer than we wanted, but we still moved it relatively quickly. Despite the unexpected HVAC costs and the water issue with the city and HOA, we were able to preserve profitability. The deal was not as strong as originally projected, but it still worked.