4 family investment in Worcester

[Eric Girard]

Investment Info:

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

Purchase price: $529,000

1031 exchange. 4 One bedroom apartments. Started out with $3800 in rents. Rents will be $5,000 plus laundry is $50 a month starting 2024. Started out cash flow was around $1,000 by January 2024 cash flow will average $1,600 per month.

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

I owned a one bedroom condo but now I own 4 one bedrooms.

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

MLS. I negotiated repairs like window replacements and the owner was kind enough to install more windows and do extra work for me.

How did you finance this deal?

Conventional loan. 75% ltv. 1031 exchange funds from the sale of my condo.

How did you add value to the deal?

Proper management to bring up rents to market rate.

What was the outcome?

Still own, cash flowing, and few issues

Lessons learned? Challenges?

I would have liked to buy 4 two bedrooms or three bedrooms.

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

I did the deal myself, I'm a real estate agent and investor