Analyzing potential deal, north shore MA

[Kevin Olson]

BP ,

I am in discussions w/ two potential deals that I am looking to get a little feedback on if they make sense or are too thin. The deals are actually quite different in that one property is a 3 family (looking to buy n hold most likely) and the other is a Single Fam (add-value opp. rehab/flip or refinance cash out). They both in the same city but opposite ends of the city, know the neighborhoods well, and am comfortable with them and the values they demand.

An advantage I have in this transaction is that I will more than likely use a first time home buyer rate and only 5% down payment incentive program. Disadvantage, it will be my first home that I OWN..

The meat - 3 family - 2462 SF - Purchase price $300,000 (in discussion w/owner)

Unit 1- 3bdrm plus art gallery - $1400/Mo

Unit 2 - 2bd - $1100/Mo

Unit 3 - 1bd - $900/Mo

Total (conservative rents) = $3400/Mo

Property is recently vacant, in decent shape (out-dated) nothing major needed ASAP, I would look to do minor cosmetic upgrades to be a "higher standard" rental unit at competitive market rate.

2nd Property - Single Family 3,000 SF 5 bdrms - 2 kitchens (possible multi conversion) - Purchase Price $280,000 (in discussion w/owner)

Quiet Dead end street in nice neighborhood, large backyard w/greenhouse-

ARV - $425-$450,000

Assessed $440,000..

Initial walk through property needs new roof, and may have mold issue. Need to further investigate w/ my contractor and inspection. Rest of house in very good shape, estimating $50,000 in repairs to be conservative, hopefully 1/2 that #.

That is the basics for these two that I am looking into right now, my preference in RE is buy n hold for long term wealth building and possible cash flow. However, if it makes sense I would most definitely get into a project w/ other exit strategies. In my market #'s are fairly high and I found most multi's from a cash flow investing basis do not make sense (which is why I'm looking into investing out of state.) However flips, and single family prices are strong and have been climbing as they are increasingly becoming in demand the past 12 months and I wouldn't mind a lump sum of cash!

Any feedback would be greatly appreciated, please let me know if you dont think these make sense at the current #'s you wont hurt my feelings.. thanks!