Updated about 3 years ago on . Most recent reply
My first rental property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Its a 3-Unit Multi-family in Worcester, MA. Each unit is 3bed 1bath. We inherited 2 tenants with the property who were paying below below market rents.
What made you interested in investing in this type of deal?
We have been looking for our first investment property all across the greater Boston area. Worcester caught our eye because of the diversity of population - students and working professionals, proximity to Boston and one of the few towns in MA which meets the 1% rule. Also, when we saw the property, at a high level, understood the work which is needed to upgrade and realized it an instant value add. (property was listed below market, got appraised 35k above our buy price, prior to any upgrade)
How did you find this deal and how did you negotiate it?
We found this deal on Redfin. We worked through the Redfin agent for negotiation. For all the major issues highlighted during the property inspection, we got a quote from vendors and used that in negotiation.
How did you finance this deal?
25% downpayment - We saved this money overtime.
How did you add value to the deal?
Finding the right deal, good negotiation strategy and once we took the possession immediately worked on upgrading the property.
What was the outcome?
Found a good value add property for our portfolio and a good kick starter property. Hopefully many more to come
Lessons learned? Challenges?
Don't be nervous.
Run your numbers and trust them. There are lot of uncertainties for sure but as long as numbers make sense, go for it.
More than the income from the property, the most valuable thing we learned is connections. We joined local meet in Worcester run by Candor Realty. It has helped us immensely in connecting with like minded people and big confidence boost for our past and future challenges.
Most Popular Reply
@Rahul Munot - Awesome work, sounds like a solid deal! Yes, I agree Worcester is a great market a ton of potenital. Glad you found value the Worcester Simplified REI meetup that @Ian Hogan, @Sabrina Sanchez and I host once a month in Worcester. Anything we can do to help, always reach out. Happy to help other investors along the journey.