NH Triplex with Significant Value Add Opportunity
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $197,500
Cash invested: $57,986
Purchased this 3 family in Hillsborough County in NH as the rents were half what market will bear and heat & hot water are included. We're currently doing some mild cosmetic renovations like flooring, paint, and code updates in all three units. The property cash flows very well right out of the gate and we will update kitchens as well as perform some value-add features as the money allows. It was quite possibly the most difficult deal to secure but we're off and running on our first deal as business partners.
What made you interested in investing in this type of deal?
Our interest and passion is multi-family BRRRR properties.
How did you find this deal and how did you negotiate it?
Surprisingly, this property was on the MLS and our first offer was accepted.
How did you finance this deal?
Conventional loan
How did you add value to the deal?
Simple cosmetic updating - LifeProof flooring, paint, ceiling fans in living room and bedrooms, electrical switches/outlets, and updated light fixtures. There's space to build out another apartment as well as a potential office space in the basement with a zoning adjustment.
Lessons learned? Challenges?
More than doubled the rents (brought to market rate) with cash flow near $2000/mo.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Siobhan Bennett @ Keller Williams in Bedford, NH (http://sbennett.yourkwagent.com/) and contractor Michael Mayo, owner of Your House Remodeling in Concord, NH (http://yourhouseremodeling.com/YHRLLC/Welcome.html)
