6 Unit multi family buy & hold in Salem Ma

[Eric Sullivan]

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $1,250,000
Cash invested: $115,000

6 unit buy & hold in Salem Ma. Large value add opportunity with a lot of upside. We invested 115k in renovations to bring rents up to market rate (30-40% per unit)

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

Outside of our condo conversion projects, we are actively looking for value add multi-family properties. The numbers were strong with a COC just shy of 25%.

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

Our agent notified us. We ran our numbers and lead with our offer of 1.25m. They countered 3 times but we didn't budge and were able to close.

How did you finance this deal?

20% down with a local bank and a small construction loan for 115k @ 4.1% i/o, 12-month term.

How did you add value to the deal?

Ability to raise rents 30-40% per unit. As well as cosmetic updates.