Unique Historical Multifamily

[Jessica Zivny]

Investment Info:

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

Purchase price: $217,500
Cash invested: $40,000

Historical duplex with a bonus in-law suite. Large 3-bedroom, a 2-bedroom, and a bonus small studio.

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

The versatility! I bought this as a vacation home so I have a place to stay when I'm in town. I don't need a lot of space, so I can rent out the other 2 full apartment units and keep the studio to myself (as a private extension of the 2 bedroom). One unit as a long term, another furnished as a mid-term (so I can stay in a larger apartment at some point if I so desire), and I will give short term rental a try in the studio when I am not in town.

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

MLS. There were a LOT of issues with it (some rotting floor damage from a badly insulated crawlspace, pipe leaks, etc), so I was able to negotiate for $7,500 under my original offer plus $10k in sellers credits (covered closing costs and 3 mo's mortgage + taxes)

How did you finance this deal?

Cash: 10% down, cash rehab.

How did you add value to the deal?

Full gut renovation. Top floor is complete, basement & crawlspace insulation redone, bottom floor renovation is next!

Lessons learned? Challenges?

I won't be doing cash anymore now that I better understand the power of leverage!