Investment Info:
Small multi-family (2-4 units) buy & hold investment in Hagerstown.
Potomac Street in Hagerstown is undergoing a significant revitalization, boasting trendy restaurants just off the square and the renovation of the Maryland Theater. Additionally, the charming architecture of the homes along the street enhances its appeal, making it a prime destination for investment.
What made you interested in investing in this type of deal?
The townhomes are spacious, easily accommodating two generous apartments within a single unit.
How did you find this deal and how did you negotiate it?
In the MLS listing, I initially offered $10k above the asking price due to multiple bids. However, after the inspection results, I revised my offer back to the asking price.
How did you finance this deal?
Commercial bank loan
How did you add value to the deal?
Negotiated with subsidy providers for a 3% rent increase and tenant paid utilities.
What was the outcome?
Cash flows $8k/year
Lessons learned? Challenges?
Don't hesitate to offer significantly above the asking price, as you always have the option to negotiate it down later.
