Updated over 6 years ago on . Most recent reply
Leominster MA Duplex
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Leominster.
Purchase price: $330,000
Cash invested: $11,550
This was a driving for dollars deal. It' a large side-by-side duplex with 3bed/2bath each, modest well-maintained yard, plenty of off-street parking, and in great shape for a property built in 1900! This is our first rental property! We'll be house hacking one side, while renting the other. The current/previous tenants were paying well below market rents and have occupied the place for about 10 years.
What made you interested in investing in this type of deal?
My wife and I were looking for a small multi family we could live in and this one fit the bill for size, condition, and location. It was for sale by owner too, which was another plus.
How did you find this deal and how did you negotiate it?
Driving for dollars. I was on my way to see two other nearby houses and saw the sign on the lawn for this one.
How did you finance this deal?
FHA
How did you add value to the deal?
So far have replaced drop ceilings and wood paneling with smooth painted surfaces, replaced brass fixtures and hardware with brushed nickel, installed high efficiency toilets and shower heads. Short term planning to install privacy fence for the side yard, finish part of the basement. Long term planning to finish attic, split/submeter water utility, possibly convert to condos.
What was the outcome?
Will be moving into half the duplex in a few weeks and building equity for our next deal.
Lessons learned? Challenges?
Tenants next door have lived there for 10 years. We were careful to make them feel wanted and welcome to stay, while still doing our due diligence to screen them before signing a new lease. Clean, reliable, long-term tenants are hard to find and valuable to a newbie landlord.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Michael at NewFed Mortgage was athe man - incredibly helpful. Kayla at Central Mass Real Estate was great, and our inspector Knight Home Inspections was very thorough and fair. Our attorney Christina at Touchstone Closing & Escrow was also a huge help. I’d recommend all the above.
