3yrs after my first multi family investment

[Christopher DeFronzo]

Investment Info:

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

Purchase price: $200,000
Cash invested: $50,000

2 family investment property. 3bd per unit.

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

Cash flow.

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

MLS. Estate sale. Made reasonable offer and accepted counter offer. $4k back at closing for new oil tanks.

How did you finance this deal?

Conventional financing, 25% Down. Refinanced a year and a half later and pulled out entire down payment.

How did you add value to the deal?

Renovated each unit. 2nd floor requires extensive renovation. Added $80k of sweat equity then refinanced.

Used mass saves program to fully insulate house. And for $17k 0% financing of 2 new heating systems.

What was the outcome?

Buy and hold. Great tenants. Pulled all of my down payment out after refi! Cash flow!

Lessons learned? Challenges?

It was my first deal learned so many. Had no heat on day 1 due to delayed closing and no oil delivery by previous owner. Pipe let go in laundry area a few weeks later but luckily I had a new tenant moving in that caught the problem. Trial by fire! Learned the time commitment and toll a 1500 sq ft unit renovation would take on my life. My next purchase was a fully renovated 4 unit because of this lesson!