3-Family + Single Family on one lot

[Elvis T Santana]

Investment Info:

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

Purchase price: $220,000

Cash invested: $70,000

This is two houses on one lot/deed.

3-Family house and a Single Family House

House hacked when I moved here from NYC.

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

Made a deal with my wife's grandfather who owned this for decades and built himself the single-family. We agreed he could live there "as long as he wanted" in exchange for a good deal. It appraised at 300k at the time.

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

My wife's grandfather owned it.

How did you finance this deal?

Commercial loan because we still lived in NYC.

How did you add value to the deal?

Split the property with the city.  Gut renovated one unit.

What was the outcome?

The 3-Family and the Single Family now comp separately rather than combined against a 4-unit house in a worse location with smaller lot size (as had always been the case).

Added roughly 250k+ in combined market value.

Lessons learned? Challenges?

Being friendly with your tenants is a double-edged sword.