First Two-Family through Foreclosure Real Estate Broker

[Bivi V.]

Investment Info:

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

Purchase price: $95,000
Cash invested: $65,000

Two Family. Very convenient location on busy but safe as well as peaceful area of the town. Good curb appeal. First floor with 3-BRs and 2nd floor with 3-BRs plus a 4th Office/Study room or kid BR. Nice open view from all sides. No residential neighbor around the property. Nice size backyard lot. Good off street tenants parking for 4 or more cars on the property.

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

Location. Location. Location. Just across from two strip shopping malls, banks, restaurants, stores. Just off the street from the state route and just across the river from downtown businesses and new MGM Casino ( that was scheduled to be opened in 2018).
Very private lot. BA zone for business and multi-family.

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

MLS listed. Offered little higher than the asking price, as other buyers had also shown interest.

How did you finance this deal?

bank mortgage, 30 years, fixed.

How did you add value to the deal?

Improved both apartments to be able to rent at higher than the previous one of just $750 each. Got $1195 and $1295 as rents.

What was the outcome?

Now trying position it to rent for business use - at $2000 each unit.

Lessons learned? Challenges?

Had been soft and had rented to two tenants who were also friends. Had to evict both of them at huge cost. Learned the hard way to know how to do due diligence for next tenants. Tenants did not represent the property well during their stay either. Business is to be conducted as business and charity is to be done as charity without risking the business assets.

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

Real Estate Agent we hire as BUYER's broker, just shows the property with key from the selling broker and splits the commission. We are looking for someone who really is helpful to the buyer and has knowledge with some service commitment. Looking for good residential and commercial agent, like many investors !