Third Two Family from Seller per MLS - not foreclosure.

[Bivi V.]

Investment Info:

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

Purchase price: $180,000
Cash invested: $69,000

Two Family. On Bus line. Each unit 3-BRs. Near nicer school and closer to shopping, library and main roads. Quiet peaceful backyard with one storage unit.

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

Two Family was on our daily traveled road on which we had also looked at other two-family and 4-family but did not buy. The broker, the seller and the attorney were all known.

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

MLS listing. Had offered this price but the seller wanted 199,000. So we had backed out. After couple of months seller contacted us to sell at 180,000.

How did you finance this deal?

Bank, 30-years fixed rate.

How did you add value to the deal?

Property was rented at $785 each floor apartment. Did cosmetic improvements. Ceiling Fans, Stained wooden floors and walls, new appliances, tiled kitchen walls, upgrades bathrooms, new paints, some plumbing repairs etc. In short gave entirely different look to the inside of both the apartments.

What was the outcome?

Waited long enough to get the market rents from both the tenants. $1,310 and $1,299. Happy with both of them.

Lessons learned? Challenges?

Hold on to your offered price even when you like the location and the property. This one was just at correct market price, not a great deal, but we wanted to by one more property to rent.

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

None to recommend. BUT if anyone has one, then just let us know. Lender banks which can offer 30-years fixed for more than four properties to one owner for property in West Springfield MA area.