Updated over 5 years ago on . Most recent reply
2nd Investment Property Purchase
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $810,000
Cash invested: $65,000
4 Family home with 1 bedroom units
What made you interested in investing in this type of deal?
This property is a solid building with 4 one bedroom units. There will be minimal maintenance and wear and tear with the size of the units. The location is prime with close proximity to commuter train and highway for easy access to Boston
How did you find this deal and how did you negotiate it?
MLS from my realtor. Asking was $899,000, I offered $800,000 just as Boston was starting a shutdown from covid pandemic. Purchase price was settled at $810,000
How did you finance this deal?
Conventional 30 yr mortgage at 3.85% rate, 25% down payment
How did you add value to the deal?
New kitchens, bathrooms, interior/exterior paint, coin op laundry added to basement, driveway replacement
What was the outcome?
Almost done with repairs, units offered at $1750ea, much attention from potential tenants. Shooting for full vacancy by 9/1/20
Lessons learned? Challenges?
Stick to rehab budget. It’s easy to get carried away as remodeling begins. Need to draw a line somewhere because updates can get away from you quickly.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Bobby Petrelli Jr with Harbor One Mortgage
George Pepdjonovic with Realty Edge