4 Family House Hack Lowell, MA
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $415,000
Cash invested: $16,000
Appraised: $465,000
Owner occupied multifamily with four one bedroom units.
What made you interested in investing in this type of deal?
I was looking for my first real estate investment and living rent/mortgage free was appealing.
How did you find this deal and how did you negotiate it?
I found the deal on Zillow and requested a showing through my realtor with in hours. I made the first offer, offered slightly over asking price, waived inspections, and agreed to allow the existing tenant to stay (they left before closing).
How did you finance this deal?
With a conventional 20% down loan
How did you add value to the deal?
I did floors and renovated bathrooms in each unit, put coin operated laundry in the basement, and rented the units out. outside I had the old half of the roof replaced and a chimney removed. The garage needed a lot of work. I re framed rot, rebuilt the field stone foundation, and vinyl sided it. I also added a tenant patio area.
What was the outcome?
4 months later to the day I closed on a cash out refinance where I pulled 55K in equity out and lowered my interest rate by a full percent.
Lessons learned? Challenges?
Be patient in finding the right deal. Do not try and do the entire renovation yourself even if you are capable as it will become stressful.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Jessica Tomlinson of Haverhill MA was my realtor and I highly recommend her.
