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Updated about 1 year ago on . Most recent reply
Our Second Investment Property
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
It's a 3-Unit Multi-family in Worcester, MA. Each unit is 3bed 1bath. We inherited 3 tenants with the property who were paying below market rents and are month-to-month tenants.
What made you interested in investing in this type of deal?
The property is in a decent shape, the location is very good and I was able to get it for $28k below the list price.
How did you find this deal and how did you negotiate it?
I found this deal via Zillow.
My agent was very helpful during the negotiation process. It was a difficult negotiation due to the fact that the sellers kept changing their mind about the sale of the property and also changed the terms of P&S in the middle of the process. However, we were able to get fair compensation for the misrepresentations.
How did you finance this deal?
Traditional bank financing, we took a 7/1 ARM
How did you add value to the deal?
We plan on making a few minor updates to the property and increasing the rents in the next few months.
Lessons learned? Challenges?
Learnt a lot about negotiation strategies and also to double check all the documents like the estoppel agreements against what was marketed before signing the P&S and putting down the deposit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, @SabrinaSanchez was the agent who helped us on this deal and I hope to work with her in the future too.
Most Popular Reply
Quote from @Rahul Munot:
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
It's a 3-Unit Multi-family in Worcester, MA. Each unit is 3bed 1bath. We inherited 3 tenants with the property who were paying below market rents and are month-to-month tenants.
What made you interested in investing in this type of deal?
The property is in a decent shape, the location is very good and I was able to get it for $28k below the list price.
How did you find this deal and how did you negotiate it?
I found this deal via Zillow.
My agent was very helpful during the negotiation process. It was a difficult negotiation due to the fact that the sellers kept changing their mind about the sale of the property and also changed the terms of P&S in the middle of the process. However, we were able to get fair compensation for the misrepresentations.
How did you finance this deal?
Traditional bank financing, we took a 7/1 ARM
How did you add value to the deal?
We plan on making a few minor updates to the property and increasing the rents in the next few months.
Lessons learned? Challenges?
Learnt a lot about negotiation strategies and also to double check all the documents like the estoppel agreements against what was marketed before signing the P&S and putting down the deposit.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, @SabrinaSanchez was the agent who helped us on this deal and I hope to work with her in the future too.
Rahul, thank you for the kind words! It was definitely a process to get to closing but I'm very happy you were able to secure this one! Looking forward to seeing you grow!