4 Brand New Townhouses purchased in June

[Eric Hawkes]

Investment Info:

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

Purchase price: $287,500

4 Brand New Townhouses purchased in June. They are each 3 bedrooms/2.5 baths/1700 sq ft/2 car garage
All rented for $2100.

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

Wanted to have property in the Worcester, MA because of the money the city and state are putting into the city.
The redevelopment of much of the downtown is a wonderful sight to see and I wanted to be apart of it.
The properties themselves, I was looking to purchase 1 or 2 within the development but decided that we were going to
sell another investment property and purchase all 4.

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

Saw the properties for sale online.
Went to visit, liked the properties and the idea of owning all of them vs. 1/2.
I'm a realtor so my lawyer and I negotiated each of the properties down from $300,000 to $287,500.

How did you finance this deal?

Financed it through a mortgage company and sold another investment property through a 1031 Exchange.

How did you add value to the deal?

buying all 4

What was the outcome?

bought all 4 and now renting them all out.

Lessons learned? Challenges?

Dealing with a builder during the sale process was tough.... and dealing with them after hasn't been fun either....
Hopefully the next time, I'll find a builder who actually cares about what he's building and be a solid collaborator
before/during/after the sale.... Because I'm sure he's going to build/sell other property in the future....