9 Units Allenstown NH

[Todor Ialamov]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Allenstown.

Purchase price: $730,000
Cash invested: $182,500

9 Units total. 2 Buildings - 6 apartments and 3 apartments.

What made you interested in investing in this type of deal?

This was a property owned by a non profit organization "The way Home", who helps low income residents find their homes. They had some qualifying conditions such as new owners needed to have property management and subsidized tenants experience. The buildings were gutted and rehabbed in 2015 using tax credits and could only be rented to low income tenants until 2027.

How did you find this deal and how did you negotiate it?

It was on MLS. It was a very long process since they had a bunch of restrictions and I had to be approved by NH Financial Housing Authority

How did you finance this deal?

25% down payment. 1031 Exchange using only proceeds (no out of pocket cash) from a 3 family we had sold.

How did you add value to the deal?

The price of the property will significantly increase once all conditions from NHFHA are lifted in 2027.

What was the outcome?

This is a perfect example of the "boring" stacking method to grow your portfolio. I bought a 3 Family in Methuen MA in January of 2019 for $365,000 and sold in August of 2020 for $523,500. Without any out of pocket funds, we transitioned from 3 Units with $1700 monthly cash flow, to 9 units in a much better condition with $3,300 monthly cash flow.

Lessons learned? Challenges?

Learned a lot about affordable housing and tax credits

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

Yes, I did not have my NH license yet, so used an agent who is really close to our team @JeremyWirths