All Forum Posts by: Edwin Figueroa Torres

Investment Info:

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

Purchase price: $277,000

Two family home
First floor apartment has two bedrooms, with the possibility of three, and one bathroom.

Second floor has two bedrooms and one bathroom.

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

I first purchased this house without knowing anything about investing. It made sense to buy a two family house and have someone help pay the mortgage.

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

The moment the house appeared on MLS, I called my realtor and was seeing the house by the end of the day. I wrote a letter to the homeowner, who's family had owned the house for 60 years. I included a picture of my son and I and she said that is what sold her on us.

How did you finance this deal?

I used a VA Loan. 0% down and 100% financing.

How did you add value to the deal?

I renovated the kitchen, putting in new appliances and granite countertops. Also, put in a 12' x 12' deck for the first floor. Painted the rooms and removed the wood paneling from the first floor unit.

What was the outcome?

I lived in the first floor apartment for the first two years, while renovating and was able to get $1610 for the first floor apartment and get $1350 for the second floor apartment.

Lessons learned? Challenges?

I did most of the work myself, through watching YouTube videos and help from my dad. My childhood friend works in kitchen renovations so he helped with the installation of the granite. A lot of sweat equity, but a lot of lessons learned.

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

I worked with Patrick Quealley with Hancock Mortgage and Barbara King with Cameron Realty.

The guys with boots on the ground now. I know a lot of the homes in PR are made of cement. Is it too soon to see any changes to the prices on investments due to the earthquakes? Thanks

Hey Luis,

I have recently started my REI journey and am also located in Leominster. I am curious to hear where you are now four years later? Have you started investing? If so, do you want to meet up and talk about your adventure in the area?

Hey Daniel,

It is the house on Central St.

Edwin

I’m working with a mortgage company. I did shop around. I received rates as low as 4.2 and I went with the 4.8. But I was a bit shocked when I saw that it went up 0.7%.

I am in the middle of purchasing my first home using a VA Home Loan. The terms are below.

Loan amount: $277,000

Loan type: 30 YR VA Home Loan

Currently have $1,500 in debt.

Location: Leominster, MA

Property Type: Two-family

Year Built: 1900

Credit Score: 722

Savings: $20,000

Insurance: $1,500

Make $66,000 annually

With that being said, I feel like I am being screwed. I was verbally told 4.8% when we were going through the initial paperwork, but when the paperwork was written up, the rate that was on the papers was 5.5%. Is there anyone here that can confirm that this is in the ballpark of the current market rates, with the above numbers?