Massive 3 family in Lowell MA

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $416,003
Cash invested: $85,000

Large 3 family with 11 bedrooms (4/4/3) and 4.5 baths with off street parking for up to 10 cars this one is shaping up to be a cash cow. When we took over the units were worn and infested with bed bugs. We have turned over 2/3 units using cash from operations and making them much nicer with granite countertops, soft close cabinets, and LTV flooring throughout.

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

The price was good and we saw a lot of opportunity to increase rents and overall value of the property

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

This one was off-market and found through networking we paid slightly over asking

How did you finance this deal?

Commercial financing with 20% down, 30 years fixed at 3.5% through a local credit union

How did you add value to the deal?

Unit renovations and bringing in new tenants. The obvious was fixing things that were broken and bringing in Pest End to treat the property

Lessons learned? Challenges?

When a building has a bad reputation you need to go a little higher on finishes (hence the kitchen) to attract better tenants at turnover

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

Yes my team of investor focused agents at Candor Realty, Attorney Doug Mercurio, Simplified Management, Prime Insurance, and Jeanne D’ARC Credit Union