2 family short-term buy and hold Leominster

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $204,159
Cash invested: $40,813

Purchased small 2 family in Leominster with off-street parking and a shed for less than $205,000. It appraised at $260,000 so we got it at 79% of the appraised value, not too bad. Both tenants have been there a long time and the units are a little worn but neither of them want to move out. When one of them moves our we'll fix up the unit and make the property "FHA-able" and sell it on mls at a slight premium and trade it up to a larger property.

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

The price was well below market value

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

Part of a commercial portfolio from a landlord who was retiring

How did you finance this deal?

Commercial financing through JDCU

How did you add value to the deal?

Nothing yet but will redo kitchens and baths when a unit frees up

What was the outcome?

Making some $ every month at the moment

Lessons learned? Challenges?

Keep tenants happy. If they leave we’ll probably sell it but as long as they keep paying rent and it cashflows we’ll hold it and keep paying down the mortgage

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

Law office of Doug Mercurio for the closing, JDCU for financing, and Simplified Management for PM