Worcester, MA Multifamy

[Dan Hennessy]

Investment Info:

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

Purchase price: $147,900
Cash invested: $38,000

3900 sq ft built in 1895. Cash flows on average (4500/yr [with volatility])...recently appraised at $330,000 which I leverage to pull equity out through our refinance to make commercial real estate acquisitions

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

I was at the beginning of my RE investing oath and had spent 2 years reading and reading. With my wonderful market timing ability, I decided to the the trigger on the DAY OF Lehman collapse. My wife thought i was crazy and I thought I made a mistake!

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

I found a broker

How did you finance this deal?

Personal savings to put down 25% and pay for massive deferred maintenance

How did you add value to the deal?

Patience and finding a good, upstart property manager where I became his first client. He recently sold his business one year ago, and then the acquiring business was acquired two weeks ago!

What was the outcome?

Still holding. Exit strategy= either 1031 or leave to my daughters (hoping that’s not until 2074 when I each 100)

Lessons learned? Challenges?

Pull the trigger man!