All Forum Posts by: Elvis T Santana

Thank you!

Investment Info:

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

Purchase price: $220,000

Cash invested: $70,000

This is two houses on one lot/deed.

3-Family house and a Single Family House

House hacked when I moved here from NYC.

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

Made a deal with my wife's grandfather who owned this for decades and built himself the single-family. We agreed he could live there "as long as he wanted" in exchange for a good deal. It appraised at 300k at the time.

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

My wife's grandfather owned it.

How did you finance this deal?

Commercial loan because we still lived in NYC.

How did you add value to the deal?

Split the property with the city.  Gut renovated one unit.

What was the outcome?

The 3-Family and the Single Family now comp separately rather than combined against a 4-unit house in a worse location with smaller lot size (as had always been the case).

Added roughly 250k+ in combined market value.

Lessons learned? Challenges?

Being friendly with your tenants is a double-edged sword.

Investment Info:

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

Purchase price: $550,000
Cash invested: $70,000

House hacked a 3-Family house in the South Bronx.

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

Hot market in NYC "last frontier". Large (and rare) 3bed, 2bath 1800sq apartments.

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

Found it on Craigslist!

How did you finance this deal?

FHA loan using my wife's first time home buyer status

How did you add value to the deal?

Renovated kitchen in top floor unit and completed construction of third unit.

What was the outcome?

Rented quickly at above market rate.

Lessons learned? Challenges?

You get what you pay for with contractors.

Hello BP Community!

I purchased a property for $220k 6 years ago in Fall River, MA. Two houses on one lot/deed/title - a 3-family and a single family. It was mortgaged as commercial since I was not a MA resident at the time. I live in the 3-family now and still have the commercial loan.

The city approved a property split. I now have two deeds and can sell off the single family. Lender will facilitate partial release. I assume/expect the single family to be listed for 220-240k

Do I have a capital gains issue?

One person said no because of overall cost basis. Someone else said the cost basis may be 25% of the purchase price because I am selling one of four rental units.

All feedback is greatly appreciated!