My First Rental Property 2 years later (Boston,MA)

[Avery Heilbron]

Investment Info:

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

Purchase price: $525,000
Cash invested: $50,000

My First Duplex househack in Everett, MA.

When I first bought the property it was pretty gross and full of mouse poop. I learned how to renovate and cleaned up the place. Check out my YouTube channel for more info!

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

Househacking was the easiest way to get into my specific market and a 2-4 small multi is the best way to execute this

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

I was able to get it quasi off market, as in the listing agent called me before putting it back on the market after the prior buyers financing fell through. Was able to purchase for less than the cash buyer whose financing fell through due to my pre-approval as well as a $7k closing credit negotiated after inspection. The seller was going through a 1031 exchange and had a time constraint on their hands.

How did you finance this deal?

3.5% FHA loan

How did you add value to the deal?

Cosmetic renovations, upgraded electrical, plumbing and later the roof
section 8 tenants
refinancing

What was the outcome?

Purchase price $525k including a $7k closing credit

while househacking numbers
Mortgage $3307
unit 1 2bed1bath - $1200 (roommate & gf paying rent)
unit 2 4bed1bath - $2400

Once moved out a year later
Refinanced Mortgage $2850
unit 1 2bed1bath - $1800
unit 2 4bed1bath - $2880

My agent told me last week (march 2021) that it's worth somewhere between $650k-$675k

Lessons learned? Challenges?

When buying a vacant property it is best to assume you will be paying 1-2 months of the mortgage if a rehab is involved (potentially longer depending on the scope of work).

Having the 4 bedroom delead (lead paint abatement) earlier would've made renting out the property easier as MA has very strict lead paint laws and 90% of applicants were families with children under 6

People do not take care of their properties

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

YES!! Both my agent and lender are awesome. Please PM me if you want their info.