Portsmouth, NH Condo - 2 Bed 2 Bath - First Investment!
Investment Info:
Single-family residence buy & hold investment in Portsmouth.
2 bedroom 2 bathroom condo in Portsmouth, NH!
What made you interested in investing in this type of deal?
Portsmouth is a hot market and it was very evident at the time of purchase (9/17). The condo was an off-market deal and only required heavy lipstick and some elbow grease to increase the rent 28%. Currently it is rented 42% higher than that at acquisition.
How did you find this deal and how did you negotiate it?
Via a family members agent.
How did you finance this deal?
Partnership and Commercial Mortgage
How did you add value to the deal?
We added value to this deal by making the following cosmetic changes:
- Repainted the entire unit
- Updated all outlets and covers to be uniform (a few USB where applicable)
- Updated all light switches to 'flat panel'
- Updated kitchen cabinet and drawer hardware
- New stove & range
- New sink outlet
- New kitchen ceiling fan
- New toilet
- Deep clean & high quality post/advertising to emphasize the value the condo has to offer
What was the outcome?
Increase in collected rent at acquisition by 42%. So far have been through one couple as tenants and I am currently on my second lease with an elderly retired couple.
Lessons learned? Challenges?
Out of state investing. I am based out of Boston, MA and the unit is ~1hr away from me. The fact that the condo has a great super has helped managing at a distance for a first deal work very well.
Know when your market is hot. We bought the unit vacant in September. We made our upgrades and then posted it for rent and experienced ~2 months vacancy. Had we had a unit listed in the early spring/summer it would gathered more traction.
Tenant Screening was a learning curve.
