Single Family House with an ADU

[Erick Sembrano]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $825,000
Cash invested: $41,250

We bought a single family home with an ADU north of Boston in the town of Wakefield MA. We will renovate the fix up the first floor additional dwelling and plan to rent it out as a STR for the rest of 1st year to maximize the return of our renovation expense against our W2 taxes via the Cost Seg / Bonus Depreciation. Will find out how well we execute our plan. The long term play would be to pivot to MTR afterwards.

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

We really want to move into a house with a bigger space, parking lot, yard, but still have the extra space to use as an investment to offset the expense and mortgage.

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

We found the house on the MLS and made an offer on it. We paid about 45k above asking price .

How did you finance this deal?

Conventional 30 yr mortgage with 5% DP.

How did you add value to the deal?

Cosmetic upgrades for kitchens and baths, new paint and fixtures. Also updated the yard and landscaping.

What was the outcome?

Will update on the outcome on how well or not as well we execute our plan.

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

Our Investor Agent for this property is Lien Vuong and our lender is Michelle Guertin of Bank Five.