Updated over 5 years ago on . Most recent reply
6 Unit multi family buy & hold in Salem Ma
Investment Info:
Large multi-family (5+ units) buy & hold investment.
Purchase price: $1,250,000
Cash invested: $115,000
6 unit buy & hold in Salem Ma. Large value add opportunity with a lot of upside. We invested 115k in renovations to bring rents up to market rate (30-40% per unit)
What made you interested in investing in this type of deal?
Outside of our condo conversion projects, we are actively looking for value add multi-family properties. The numbers were strong with a COC just shy of 25%.
How did you find this deal and how did you negotiate it?
Our agent notified us. We ran our numbers and lead with our offer of 1.25m. They countered 3 times but we didn't budge and were able to close.
How did you finance this deal?
20% down with a local bank and a small construction loan for 115k @ 4.1% i/o, 12-month term.
How did you add value to the deal?
Ability to raise rents 30-40% per unit. As well as cosmetic updates.