The property no one wanted

6 Replies

Two years ago I bought a completely renovated historic 8 unit loft style building in Massachusetts. The building was mismanaged by a local (crooked) property management company that loaded the building with a group of low life friends at discounted rates telling the out of state owner that it was the best he could do. I bought the building amid actual threats of violence from the property manager who rented office space in the building. I paid $820K for the building which was only averaging $800.00 per unit when I bought it. I've since evicted them all and raised the rents to $1400-1650 per unit. I just had it appraised and after only two years its value it now $1,456,000. Trust your instincts and ignore people who are only looking out for themselves
Originally posted by @Robert Nason :
Two years ago I bought a completely renovated historic 8 unit loft style building in Massachusetts. The building was mismanaged by a local (crooked) property management company that loaded the building with a group of low life friends at discounted rates telling the out of state owner that it was the best he could do. I bought the building amid actual threats of violence from the property manager who rented office space in the building. I paid $820K for the building which was only averaging $800.00 per unit when I bought it. I've since evicted them all and raised the rents to $1400-1650 per unit. I just had it appraised and after only two years its value it now $1,456,000. Trust your instincts and ignore people who are only looking out for themselves

 Sweet! Nice work and thanks for sharing.

Smart shopping! You recognized value. You increased rents through good management. Even a SFH can be more valuable to an investor if properly managed.

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

Amazing find!  Would you mind going into your thought processes of that deal.  I don't need to know the specifics but if you wouldn't mind elaborating on what you were thinking before, during, and then finally after you made the purchase.  What led you to the deal?  How did you know it was a deal (what signs sent up red flags on the current property manager, what did you look for)?  If you could do it all over again is there anything you would do differently?  Thanks in advance!

Is it the building in your profile picture? Nice looking building! 

That sounds like a wonderful deal, great way to build value on a nice high quality asset.

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