Updated almost 7 years ago on . Most recent reply
First Deal For Rookie Investor
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Winthrop.
Purchase price: $687,500
Cash invested: $35,000
Owner Occupant 3 family house-hack in Winthrop, MA. Renting 2BR/1B and 1BR/1B units.
What made you interested in investing in this type of deal?
I was interested in the concept of a house hack with a small multi family home in my area. I ended up buying closer to the city (Boston) where market prices were still reasonable (relatively speaking), with a lot of upside for appreciation.
How did you find this deal and how did you negotiate it?
This deal came from the MLS, my friend/mentor/RE Agent found it and helped me negotiate the deal. Initially the property was listed at $750,000 and we ended up getting an offer accepted at $687,500.
How did you finance this deal?
FHA
How did you add value to the deal?
The property was pretty much turn key, which was the goal for my first deal that I was going to move into upon closing. Since living in the property, I have redone the electrical service, put on a new roof, split the gas utilities, and completed additional minor upgrades on all three units to add value.
Lessons learned? Challenges?
Ultimately I gained a lot of confidence from doing my first deal, and am actively looking for my next one to increase monthly cash flow. So far I have luckily faced no major challenges aside from the typical lessons that a new landlord faces. Lessons I've learned include how to find/screen tenants, performing minor repairs, maximizing potential cash flow through expense management, and more.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes - Seth Williams (BP Pro Member) from LedgeEnd Realty has taught me mostly everything I know when it comes to how to find, analyze, and close on deals in the area. Great asset for anybody looking to invest in the greater Boston market.