Another Property on Green Hill Parkway

[Michael H.]

Investment Info:

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

Purchase price: $340,000
Cash invested: $130,000

3 Family investment property in the Green Hill Neighborhood of Worcester. Large cash flowing triple decker on a corner lot with great access to downtown, the Lincoln street retail hub and I-290. Steps from the 500 acre Green Hill park.

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

It was adjacent to two other properties my brother and I owned. Good basis on the deal with strong upside potential.

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

It was on the market for several months without accepting any offers. We offered cash initially then raised our price. The seller was very close with his tenants and did not want to disrupt them so we offered a very long closing timeline (8+ months).

How did you finance this deal?

Investment loan for the purchase. Private money for the renovations.

How did you add value to the deal?

Two of the three long term tenants who were paying 1/2 of market rent moved out in the 8 month closing process. We are renovating their units and renting them at market. We are planning to refinance next year given our low purchase price and investment in the property.

What was the outcome?

Work in progress.

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

Joe Galvin with Movement Mortgage. Doug Mercurio with Mercurio Law