5 unit 15% CoC - from MLS

[Jonathan Bombaci]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Pepperell.

Purchase price: $600,000
Cash invested: $160,000

Great 5 unit property in downtown pepperell, a small suburb on the MA/NH boarder just outside of Lowell. We bought this one off MLS. We got it under agreement for a client but during the home inspection they found a $25,000 structural issue which scared the buyer. We're used to repairs like that on older building like this so with the clients permission, we stepped in and took over the contract.

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

Once rents are increases it’s a cash cow. Plus in lowell (neighboring city) 5 units are selling for $800-$900k. Pepperell is a much more expensive suburb than Lowell where the single Family houses sell for about double when compared to Lowell

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

MLS - went $10k over asking after 1day on market and locked it up before the open houses were scheduled. Made it easy for the listing agent, the seller, and the tenants.

How did you finance this deal?

Commercial financing from Jeanne D’ARC Credit Union, 25% down at 3.5% fixed for 5 years and amortized over 25

How did you add value to the deal?

Minor repairs and increasing rents but still keeping them below market value.

What was the outcome?

Still a work in progresss

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

Yes my team of 16 investor focused agents, Doug Mercurio a real estate attorney and partner out of North Reading, simplified Management as the PM, and JDCU for financing