9 unit CASH COW in Lowell MA

[Jonathan Bombaci]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Lowell.

Purchase price: $1,196,000
Cash invested: $240,000

Purchased great condo style 9 unit in Lowell MA. This is a cash cow! 2- 5 bed units 2 4-bed units 3 - 3 bed units and 2 -2bed units makes the gross potential rent almost $18,000 a month when it’s brought up to market price. That being said the property has a rough history as a fully subsidized apartment building but we’re updating the units with granite and new floors on turn and have already turned over 3 units to better tenants with another 2 in the works.

What made you interested in investing in this type of deal?

The math was insanely goos

How did you find this deal and how did you negotiate it?

Off market through a colleague. Paid over asking for it

How did you finance this deal?

Jeanne D’ARC Credit union 20% down commercial financing

How did you add value to the deal?

Unit upgrades at turnover

What was the outcome?

Still stabilizing the asset. Have owned it less than 1 year

Lessons learned? Challenges?

Stigma matters. The fact that this was the problem building in the neighborhood lead to some challenges with vacancies at transition of ownership.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Candor Realty Team in Lowell ran the transaction. That is my team which focus’s on working with investors on multis from 2-20 units. Also Simplified management is the PM, Doug Mercurio did the legal work and JDCU financed it.