Worcester, MA Multifamy

[Dan Hennessy]

Investment Info:

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

Purchase price: $160,000

Cash invested: $37,000

Recently appraised for $230,000

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

I already had a 3-family in the city and saw inventory tightening.

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

It was an FHA property with FHA eligible ( owner occupied ) investors having the right of first refusal. After the expiration. I put in the bed with in one hour at 15,000 less than asking. After going back-and-forth numerous times with some faceless bureaucrat at Fannie Mae, they excepted my offer

How did you finance this deal?

All cash. Then refinanced after a modest rehab has allowed me to fill all three units and get that property cash flowing nicely.

How did you add value to the deal?

BRR..LOL

What was the outcome?

Buy and hold, it cash flows

Lessons learned? Challenges?

The biggest challenge is lack of parking, which has led to tenant turnover and challenges in finding tenants

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

Yes. I have a great property mgt company.