First Purchase in Massachusetts. Netted 60+% ROI on year 1!

[Gert Dervishaj]

Investment Info:

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

Purchase price: $360,000
Cash invested: $28,000

Found a sweet 4-family in Mass and purchased it FHA. I am now receiving ~60% ROI for year 1 and it's great!

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

Decided to purchase the house because it has an extra 1000 sq ft full height attic for an additional unit if the city approves it. And it has a 3.5 car garage for extra income! Can't wait for year 2!

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

I found it on the MLS and negotiated down 10k from asking from things found on the inspection.

How did you finance this deal?

FHA loan through a regular bank.

How did you add value to the deal?

Rents were under market and building needed some cosmetic updates. I renovated a few things on my own and increased rents to market levels depending on condition of unit. I also am giving tenants free wifi as a value add since I have a security system in place there.

What was the outcome?

Positive. I have an investment now where my net cash flow is more than my Mortgage (PITI), water, and utilities combined. I get to put half of that away for a rainy day and still profit $250/unit/month. 4 Families are definitely the way to go!

Lessons learned? Challenges?

I could've negotiated better, the whole needs new windows so I have to plan for an additional 13k expense this upcoming year or two. I should've gotten the seller to credit me the cost or asked to get them done prior.