Buy and Hold Federal Hill

[Joe Rodriguez]

Investment Info:

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

Purchase price: $460,000
Cash invested: $16,000

4 unit property in Federal Hill

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

I wanted to maximize the number of units with the loan program I was using (FHA).

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

I found this deal on MLS. I am a licensed agent in RI.

How did you finance this deal?

I financed this deal using an FHA loan. I was able to refinance another property out of FHA, giving me the ability to use FHA on this deal.

How did you add value to the deal?

3 of the units were already rented. I did some updates and cleaned up the 4th unit. This unit has been rented recently.

What was the outcome?

I will plan on keeping this property for many years and will add value as tenants move out.

Lessons learned? Challenges?

Check any service records on HVAC or electrical equipment. The boilers hadn't been serviced in some time and one of the boilers kept turning off the very first day I purchased the property. I had to get an HVAC company out to replace a few parts and service the unit.

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

I represented myself as the agent and I used John Folino with The Mortgage Network for my lender.