Off-market condo in Manchester, NH

[Tyler Halstead]

Investment Info:

Condo buy & hold investment.

Purchase price: $192,500
Cash invested: $25,000

I purchased my first off-market deal without using any real estate agents, allowing me purchase below market value and purchase more real estate in a tightly contested market.

This "condex" is a shared side-by-side duplex in the north end of Manchester. Each unit has 2 bedrooms, 1 bathroom, with about 1,000 square feet not including the unfinished basement. There are no HOA fees for the property (which is in a 2 party condominium association) and water/sewer/master insurance are split between both owners. The property is located in a cul-de-sac directly beside a duplex that I purchased in 2020.

After finding the deal off-market, I was able to get the property under contract $7,500 below her asking - and secured a right of first refusal agreement with the other owner in the association, allowing me the first opportunity to purchase once he decides to sell. Prior to any rehab on the property, the assessor valued the property at $37,500 higher than what I paid. We have currently repainted, added LVP and LVT floors to the kitchen and bath respectively, replaced the furnace, and updated wiring, outlets, and fixtures throughout.

We purchased this deal using a 5% conventional loan 30 year fixed at 3.375% in January of 2022. We plan to live in the property for at least one year, while managing the duplex next door that should generate at least $500-800 of cash flow monthly once fully rented (We house-hacked one unit since October 2020). Once the other owner decides he wants to sell, we plan to purchase and own 4 units directly next to each other while still acquiring other properties along the way.

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

I've already invested in that neighborhood, really like the area and class B type of tenants, and wanted to double down during an uncertain time with inflation.

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

Off-market, word of mouth referral and I negotiated directly with the seller for $7,500 under what she would've listed it.

How did you finance this deal?

Traditional conventional homeowner loan with 5% down at 3.375% rate.

How did you add value to the deal?

New furnace, repainted entire house, new flooring, updated fixtures

What was the outcome?

Finishing up the rehab so we can move into this unit, allowing us to rent the entire duplex next door.

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

My loan officer and title company were excellent to work with - highly recommend Megan Pepper and Barristers Title for their service!