First Purchase: Providence Duplex

[David Emerson]

Investment Info:

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

Purchase price: $390,000
Cash invested: $22,000

My first purchase was a house hack of a side-by-side duplex. I'm renting out the neighboring unit, as well as one bedroom of the owner-occupied unit.

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

Living and working in Boston I grew tired of paying crazy rents, and that's even with having lived on the outskirts of the city. When COVID hit and I realized work-from-home was here to stay, I realized I didn't necessarily had to live in Boston. I grew up in southern MA, went to school in RI, and spent all 4 of my college years working in Providence. Providence seemed to make sense from a commuting, proximity to family, and cash flow standpoint.

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

I worked with a killer agent who kept my up-to-date on listings he felt met my criteria, as well as gave me feedback on additional listings I was pulling from Zillow and Realtor.com. After a couple of declined offers, and one sale-to-be gone wrong, I ended up closing on this deal thanks to an escalation clause along with offering appraisal gap coverage. I came in a bit short of the top offer, but the seller liked the additional security potential from the appraisal gap coverage.

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

The property is a newer build for the area, and I looked at it as a turn-key that isn't in need of any immediate repairs. I'll be living in the owner-occupied unit that's in excellent shape, and I inherited some great tenants who have been there long term, pay fair rents, and are completely content in their unit that will eventually need some updating whenever they do move out.

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

My agent, lender, inspector, and attorney were all great to work with. They were more than happy to answer all of my beginner questions and collaborated amongst themselves to make the entire process, from offer being placed to meeting at the closing table, seamless.