House Hack West Roxbury

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House Hack West Roxbury

Sean Burke
Rental Property Investor · Boston, MA · Member since 2019 · 2 posts · 1 vote

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $709,000
Cash invested: $50,000

I bought a duplex in West Roxbury at the beginning of 2021. I did a cosmetic remodel in one unit and kept the existing tenants in the other unit.

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

I am required by my job to live within the city of Boston and I was interested in owning a multi family house.

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

I found this deal on the MLS.

How did you finance this deal?

FHA loan at 2.25%

How did you add value to the deal?

A minor cosmetic remodel.

What was the outcome?

My cash flow is not great but I am increasing rents annually.

Lessons learned? Challenges?

I wish I took my time on this deal. I ended my lease on my apartment when my offer was accepted. I was not as diligent with my numbers as I should have been. I was very excited to buy a house and rushed the deal. I still turned out in a good spot but I do wish I was a little more diligent.

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  • Account Closed
    Real Estate Agent · Boise, ID · Member since 2021 · 24 posts · 11 votes
    5y

    Congratulations on your deal from the beginning of the year! When you say you wish you took your time, what are some problems with your numbers that you encountered by rushing and how could you have been more diligent?

    0Reply
  • Sean Burke
    OP
    Rental Property Investor · Boston, MA · Member since 2019 · 2 posts · 1 vote
    5y

    I did not have a completely accurate locked in monthly mortgage payment calculated until a few days prior to closing. The MIP for the FHA loan is $500 a month which really digs into my cash flow. I am planning to refinance out of that soon. I also rushed the inspection process and did not request as much money off of the price for things that I needed to fix. I am handy and was able to do the repairs for cheap, but I should have valued my time more. My biggest mistake was telling my landlord I was moving out which put pressure on me to close the deal as fast as possible.

    0Reply
  • Indongo Davis
    Investor · Hollywood, FL · Member since 2015 · 16 posts · 2 votes
    5y

    Hi Sean -

    Feel free to reach out to us for Refi options.

    -Indongo

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    Congrats on your purchase! I dont think you should kick yourself for some misteps along the way. It's important to think about the larger picture and give yourself credit for making the leap and the first step to purchase at all. Consider this, you could have waited a few months and bought something else but your rate would have been 2.5-2.75@ (rates went up in Q2 2021) and competed with more people as the spring market ramps up. In the long run you wont really be thinking of the few hundred lost here or there, you're building equity and can refi into a conventional product soon enough!

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  • Account Closed
    Real Estate Agent · Boise, ID · Member since 2021 · 24 posts · 11 votes
    5y

    Great info Sean. Thanks for sharing and best of luck on your future successes.

    0Reply
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