Our Second Investment Property

[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.