32 Jean St. Gardner, MA 01440

[Moises R Cosme]

Investment Info:

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

Purchase price: $109,000
Cash invested: $95,465

Two family, 5 bedroom, 2,000 sq feet plus of living space built in 1910.

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

Gardner is one of our home markets.

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

Past client called, she was interested in selling it; I was looking to purchase a two family property for rental purposes so it worked out.

How did you finance this deal?

Hard money.

How did you add value to the deal?

As a standard principle we add value by giving entry level Buyers in our markets, a better product than they would otherwise find in the market. We typically get a premium to the market, which is disproportionate to the cost we incur with the materials & labor associated with the upgrades. In this case the upgrades make the rental maintenance free for the 8 to 10 years and the tenants are happy to pay strong rents for the market.

What was the outcome?

We will be leasing the units.

Lessons learned? Challenges?

We learned the difference between buying cash flow and making efficient capital allocation.