Plymouth, MA House Hack - Best Area to Invest South of Boston

[Kevin Kelly]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $505,000
Cash invested: $75,750

This was my second house hack that is now a fully rented duplex near downtown Plymouth, MA.

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

I manage properties throughout the South Shore, including Plymouth, and see the rental demand, quality of tenants, and the gentrification in the area. Plymouth's still affordable for most new investors to get started. Rents are equivalent to that of Weymouth, Quincy, Braintree, but at half the price. Its also a big step up from lower quality areas like Taunton, Attleboro, etc. Plymouth is the only spot on the South Shore with a legitimate nightlife scene that continues to attract quality tenants

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

This deal was on the MLS. I wasn't the highest offer, but developed a good relationship with the listing agent and allowed the owner of the house to remain in the bottom unit at a reduced rent until her condo was built while I occupied the top unit for a couple of months. Most offers wanted her unit to be delivered vacant as her unit is much nicer.

How did you finance this deal?

Owner-occupied conventional financing with 15% down

How did you add value to the deal?

Minor updates, mostly cosmetic. Repainted, replaced old rugs with laminate flooring. Added a closet to one of the unit's rooms to make it a legal bedroom for the next time I get the property appraised.

Had the second unit tenant move out at closing so that I could owner-occupy. Now have the unit rented at market rent $450 above what it was previously rented for.

What was the outcome?

The property is now fully rented. the 1 bed 1 bath is now rented for $1,550, and the 3 bed 1 bath is rented for $2,300. After PITI, and accounting for CAPex, maintenance, utilities, property management, and lawncare/snow removal, the property is cashflowing $600-$800/month.

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

Yes! I represented myself as I'm a licensed real estate agent, and have a great team around me that I use for my personal house hacks and investment deals who I also recommend to all of my clients. Message me if you'd like me to connect you.

[Lien Vuong]

Great work and congrats on your success :)