Multi-Family With Issues

[Michelle Simoneau]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $521,000
Cash invested: $140,000

This is a three family on the west side of Manchester, NH. We have updated plumbing for all three floors. Are just about done with the rehab on the first floor and will be listing it shortly. Once I have pictures of the before and after of the first floor, I will include them here. Thank you, Michelle

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

We knew we wanted to invest in multi-family and had spent time looking at several prior to this coming on the market.

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

Josh Poitras our realtor had found this deal and asked us if we wanted to look at it and when we did, we knew we wanted to buy it. This apt building has great structure and we have the ability to see what it's potential could be.
The building was listed for 469,000 and we offered 516,000 they counter offered and said if we increase our offer to 521,000 the apt. building was ours. So we increased our offer to 521,000

How did you finance this deal?

We financed the deal with a conventional mortgage - 25% down. We had asked the lender if we could put 20% down, they denied that request.

How did you add value to the deal?

We have updated all the plumbing and electrical with all three bathrooms. In addition, we have updated the first floor with new flooring though out, painted all the rooms, updated the fixtures in the bathroom and kitchen.

What was the outcome?

We feel it looks awesome and will be listing the first floor apt in the next week or so.

Lessons learned? Challenges?

Challenges - Since this was our first property, we did not have a contractor, plumber, electrician in place and finding these trades was challenging as these trades are extremely busy at this time.
Lessons learned - if you have an apt empty, go through the apt as if you were living there and use the sinks, bathrooms, kitchen cabinet handles, washer/dryer to make sure they work!

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

Joshua Poitras with Candor Realty is awesome and we recommend him to everyone! He is our partner and has investments also so he is able to assist with any questions/issues we have.