Triple-decker Worcester property (3-family) with huge backyard. Purchased October 2021, did cosmetic rehab over the next 6 months, now in keeping with fair market rental rates 20% above what was initially estimated.

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

I like the multifamily approach for efficiency. I have a property manager for issues/repairs. But I like to be hands-on: writing welcome notes, preparing welcome gift package, monitoring the property regularly, and keeping it in good shape. But I'm very much busy with the 9-5 grind (often it's 9-9) and only have the weekends. And so a small multi like this allows me to still be in touch with the pulse of the investment, make decisions on tenants, while only spending a limited amount of time

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

My agent, Brian Allen, found this property on the market. We waived inspection as Brian was quite confident in the limited issues it has structurally. We'll need to upgrade the roof and driveway at some point, but otherwise quite intact. Just look outdated. We put 10k above asking but the seller went with a better offer. One month later we got a call that the first buyer fell through and we jumped back in.

How did you finance this deal?

25% down on investment property, with a local credit union. My agent (Brian) also connected me with a few lenders and property managers. I relied a lot on Brian for his connection and expertise

How did you add value to the deal?

I can be very particular in terms of cosmetics and the look-and-feel. After purchase, we put new flooring and fresh paint for the units, put in new appliances, take professional photos that will then be professionally edited and virtually staged. Probably overkill for the Worcester market, but I do it because I like it. I also got insurance that will allow small pets, so we can attract the tenants who want to enjoy the huge backyard and nearby dog park. Also got HomeGoods decor for common areas

What was the outcome?

6 months in the process of stabilizing, a few disastrous contractor/agent deals, and tons of phone calls later, rentals are 20% higher. Student roommates are often the situation. I was an international student myself, and so am familiar and comfortable with their condition (no socials, no US assets, etc)

Lessons learned? Challenges?

Having a knowledgeable agent is definitely crucial. I've experienced a lot that's more of a 'door opener' or one that just accompanies you to open houses. Brian Allen is the real deal. He goes out to open houses every weekend and is very generous with his opinion. A few that stuck with me were "The layout is funky, may be useful for a boarding house, I don't like it", "The basement is a mess, I won't buy this". "This is a Frankenstein house, I'd rather spent my money in the triple-decker before"

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

A big shoutout to Brian Allen (Worcester multi), see his youtube. His weekly educational 'tours' helps you gain confidence in making the big move. This was my first big deal, you know. And it's scary taking all your savings away from the comfort of an index fund that ticks up and down, towards a deal that's less liquid. I didn't want to make the wrong move. I doubt I'll have the confidence to get into MultiFamily Real Estate if it's not for Brian. Now on to my next deal!