Boston (Back Bay) 1 bedroom

[Alan M.]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $544,000
Cash invested: $175,000

1 bedroom, 1 bath unit in the heart of Boston (Back Bay) and includes a luxury item - a parking spot! We did a high end renovation (kitchen, bath, walk-in closet, surround sound, etc.) before we moved in and now rent the property out. We've found success in this as it's probably one of the nicest one bedrooms in Back Bay and have consistently found wealthy customers looking for a pied a terre or a place for their children to live while attending MIT (just across the Charles River, 10 minute walk).

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

We bought it as a primary residence and realized it would cash flow out when we moved, so kept it as a rental.

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

The unit had been on the market for 3-4 month and needed a complete gut. We were fortunate to have a contractor that we had worked with previously and he was able to do the renovation rather cheaply. He's since gone out of business, probably because he didn't charge enough, but did great work and was very honest and courteous.

How did you finance this deal?

25% down, 4.25% 30-year mortgage

How did you add value to the deal?

High end renovation in a desirable area, including parking spot

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

We worked with a rental agent named Crystal Roach who is now at Compass. She's fantastic, consistently finding tenants for us at top dollar.