Second Investment Property (Stress-Free)

[Matthew McCormick]

Investment Info:

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

Purchase price: $435,000
Cash invested: $2,000

Our second multifamily investment. Already completely renovated when purchased, so this is intended as a long-term hold. One block away from the train station to NYC, near the Parkway Lofts. Interested in seeing the value appreciation over time for the area.
Curious if any NYC fleers come to the area given the close proximity to the city (25 minutes) and the access to the train.

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

After our first project, we wanted to find another multifamily but this time without all the headaches and in a local area we thought will improve over the next decade. This property was a flip from the last investor, so needed absolutely no work done to it.

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

On the market, multiple offers up to $450k. We placed our offer at $435k with good terms and luckily was picked!
Price on market - $425k. Appraised at $455k during closing.

How did you finance this deal?

Appraised at $455k, purchased for $435 w/ 15% down.

How did you add value to the deal?

Small touchups (landscape, some paint, washer+dryer in basement); not much work is needed.
Will add higher-quality lighting fixtures for higher rents.

What was the outcome?

Stress-free! Fantastic tenants.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Again, phenomenal lender (NJ Lenders) would be happy to recommend our agent at any time. KW agent who was also fantastic in showing up multiple properties over a span of months all across North Jersey.