Investment Info:
Single-family residence buy & hold investment in Roslindale.
Purchase price: $290,000
Cash invested: $25,000
3 Bedroom 2.5 Bathrooms townhouse with approx. 1750 sqft located in a tucked away complex. The property has 3 floors with in unit washer/dryer, ample storage, intercom, central A/C and 2 deeded parking spots and is also within a 5 minute walk to the Roslindale Commuter Rail station.
What made you interested in investing in this type of deal?
I wanted to get my feet wet and saw the potential for growth in the short and long term with nearby transit (Commuter Rail Station and discussions of the future orange line extension), bars/restaurants and Target was developing a small-format urban store within walking distance. In addition, rents were moderate in comparison to other Boston neighborhoods and I knew many young professionals were seeking cheaper alternatives. The area has a great community feel as well with farmers markets nearby.
How did you find this deal and how did you negotiate it?
MLS / Negotiated a price reduction given the condition of the property.
How did you finance this deal?
Freddie Mac first time home buyers program.
How did you add value to the deal?
Rehabbed the entire place. The property had been neglected for many years and needed updates throughout which were mostly cosmetic. Added new appliances, new fixtures, fresh coat of paint, opened up the kitchen to connect the dining room/living room areas.
What was the outcome?
After renovations the property was rented for approx. $2,600/month which generated positive cashflow and the value is currently hovering around the $400s.
Lessons learned? Challenges?
You can't do everything.. leave some things up to the professionals, its money well spent and you'll save yourself time which in turn saves money and the final outcome usually comes out better. My biggest challenge was time. Working 40+ hours a week then doing renovations during the weekend made completing the project drag for more months than anticipated and only added to my holdover costs.
