First personal investment

[Alex Madrid]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $395,000

Split entry property with a total of 4 bedrooms and 2.5 bathrooms. New HVAC system for forced Heat and A/C. Kitchen was fully remodeled and updated. The basement level was finished. The Roof was replaced in 2022, with new shingles, ice and water shield, and flashing.

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

My parents and I were looking for something we could buy, fix, and rent out; while also investing in good material to update it in case I decide to make it my primary home in the future. My dad has his own handyman/construction business, so we wanted something that required work but not so much that it required a tear down and rebuild.

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

This was a property that was going to be put on the market in the future, but another agent and I spoke to see if the owner would consider an offer before going live. The seller agreed and we made our original offer at $375k which was not accepted. After some back and forth we agreed on $395k. We were willing to pay $400k based on the comps for ARV if we decided to sell in the future.

How did you finance this deal?

My parents and I put down 25% and got the remainder as a loan

How did you add value to the deal?

Being able to get something off market in any kind of market is a great way to help avoid competition and get a good deal. I was able to supply us with a great opportunity and the professional experience from a Realtor due to being one myself

What was the outcome?

The outcome was a beautiful single family rental that is paying for itself, while growing our equity!

Lessons learned? Challenges?

One thing I did have issues with was the lender we used at the time. Towards the end, this lender was not communicating and would ghost some of my calls or say they would call back. This put us in a position where we had to extend closing 2x. We nearly had the Seller walk out and decide to list it because of the lack of communication with the lender and not fulfilling the agreed upon dates\
Lesson learned... DON'T USE THAT LENDER EVER AGAIN!

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

ME! Who do you know who is looking to buy, sell, or invest in the state of Massachusetts?