Hi @Ryan Jopson, they are incredible numbers, and thank you, but I was also in the right place at the right time, and it's also because I made mistakes along the way. The first rental property I ever bought (March 30, 2017) was right next door to that one, also a 4-unit. Well, I paid $160k for that one and I thought I was getting a great deal. I'll never regret buying it as it got me into the game and into the North Adams market, which I think still has lots of opportunity. But... it wasn't a home run. The great selling point was it had separated utilities and 4 quite new high-efficiency furnaces. It had also undergone some renovations, but needed quite a bit more, especially in the largest apartment, which was occupied by a section 8 family that trashed it and then moved out a year later. I'm still renovating that one, hopefully it will be done soon. I also had in that building a tenant who skipped out and owed me $1000, a small apartment that has seen a lot of months of vacancy, another where married tenants moved in, got divorced the next month, the husband (who stayed) lost his job and he's still doing his best to pay but he is currently in the hole for $1500. So it's partly due to screening mistakes and partly just a function of the tenant class I'm renting to. I picked up 2 more properties on that same street, which is in an excellent, central location in town, hoping that my management will kind of lift up the neighborhood. The second building I bought was for $40,000, also a 4-unit, but this one had been completely neglected for decades. I knew I was buying a major project, and had enough cash off the bat to restore the slate roof, which was the most urgent fix. Problem is I inherited some nightmare tenants with that property. I'm actually going to court tomorrow morning to try and get a judgment and eviction on the inhabitants of one unit, I have a 14-day notice out to another tenant. However, after this rough period is done, I'm still going to have a four-unit property for an investment of hopefully $70-80k after further required maintenance and renovations.
The third property was in a different part of town. It was a SFH built in 1960 that from the outside looked to be in quite good condition, up for auction. Because it was listed as occupied, no one wanted to bid on it. But at $25,000 (plus buyer's premium and closing costs of course), I knew it would be worth it even if I had to pay the former homeowner to leave. Thank God, the owner left of her own accord after I won the auction. I did about $1500 worth of cosmetic repairs, and the half-finished basement still needs paint and carpet, but my realtor thinks the house is worth between $109k-119k. We started renting it out on Airbnb and are doing ok! It's conveniently located, close to Mass MoCA and on the way to art museums in Williamstown. Hoping business picks up even more as we get more good reviews.
So when that 4-unit, in GOOD condition, with PAYING tenants, listed at $89k came up right next door to my first building, I knew it was a golden opportunity. I knew the neighborhood, I knew the market, and I knew it was a deal. The owner is a business owner who was opening up a new package store and wanted to sell his two income properties to generate some capital. He priced it to sell quickly, and he did - I signed a contract for $85k in under a month from when it was listed. (North Adams is a slow market so if you want to get the best market price you have to be willing to let a property sit for 3-6 months potentially.)
