Small multi-family (2-4 units) buy & hold investment in Pittsfield.
Purchase price: $165,000
Cash invested: $37,600
A Hard first acquisition. First Hard money lender dropped the ball and we missed our initial closing date. Got new Hard money lender and are looking to close July 28 ( almost 60 days later after we put in an offer with a 30 day closing. Thanks to new lender and great Realtor we didn't lose the investment property. Now, just feet from the finish line our appraiser is not getting info back to us in time for our closing...its gonna be tight. What Ive learned is that this type of buying and investing is for the well off and the W-2 job holder, 33 years of being self employed is not looked upon as strong work history I guess.
What made you interested in investing in this type of deal?
I am retiring and need a better passive cash flow as the world gets more expensive. The properties I look at are duplex but my next investment may be single family just to keep the cash required for the down payment and the remodel to a more manageable level. The properties I choose all require remodeling.
How did you find this deal and how did you negotiate it?
I found it thru MLS and used their broker to speak things along...I got it by bidding $15K over asking...crazy market right now.
How did you finance this deal?
Hard money lender....easy but not as easy as people lead you to believe, I tried a normal lender but being self employed they weren't interested in lending to me even though I already owned over $1.2 mil in property in Hawaii with a 740 credit score.
How did you add value to the deal?
we will be adding a bedroom to each side turning as well as a second 3/4 bath to each side and then renting to nurses. The property originally had 3 bed 1 bath and will now have 4 bed 1. 3/4 baths.
What was the outcome?
Ill let you know...
Lessons learned? Challenges?
Get a W-2 job if you want the lowest rates. Don't be afraid to fire/let go/change the company that is funding you...plenty of cash in the sea. We held our lender for 2 weeks too long out of loyalty, big mistake.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Id recommend our hard money lender Lima One....so far they have done everything they said they would in the time frame they promised ( save the appraiser...a 3rd party company). Our Realtor has been more then patient and has held this deal together. I bought this property sight unseen from Hawaii and she's keep the seller happy as I learned about how to do the Brrrr method for the first time. Her name is Maria Liccardi (Pittsfield Mass)
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