Second 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: $147,000
Cash invested: $67,000

Two Family with three Garages/Storage units. First Floor 3-BRs and Second Floor 2-BRs with two good size storage area and cedar closet. Each floor has additional enclosed porches. Nice, very peaceful location, at end of the street. Just off the major state route.

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

Very tranquil peaceful location near the major state route and near us.

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

MLS list. Offered little higher than the initial asking price, as the bank rejected the first offered price and kept bid open.

How did you finance this deal?

Bank, 30-year fixed rate.

How did you add value to the deal?

Had to repair stolen and broker pipes and water heaters even prior to the closing - big risk - the attorney was furious, as he warned us that we should not spend money before the actual closing. But the bank financing this mortgage had the appraisal and wanted our commitment PRIOR to approval of the loan. So had to risk some $21,000 even before the Closing. Never again. AS they say do NOT fall in love with the property before buying. BUT this location and its features made us just love it.

What was the outcome?

After having renovated the interior, exterior and the garages, were able to wait for the right kind of tenants. Happy with both current tenants who pay well. $1,600 and $1460 - including the use of the three garages.

Lessons learned? Challenges?

Do NOT fall in love with the location !

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

none.