All Forum Posts by: Tyler Munroe

Everything on top of the down payment netted out to about 10K, so about 122,500 all in. 

Hi Lien - you can check out the listing with pictures here and here! I've come a long way with the check in and cleaning process.  I was initially doing it myself but realized the 20-30 minute commute every time was unfeasible, so I put out some ads for local cleaners and found some awesome help.  Coincidentally, they handle snow removal as well as handyman services so kind of lucked out.  Definitely some hiccups along the way - there were some issues with the heating system which I didn't find out until it got cold, so had to work through that.  Biggest thing is anticipating problems before they happen so when they do (they will) you can have options.

 I did have some closing costs, these were round numbers to summarize the deal.  All in all, though, that 10K represents my out-of-pocket with everything factored.  I acted as the agent in this deal so got about 11K back at closing which offset closing costs and fit up for STRs.

The 10K represents the furnishings.  Spent about 7K on the larger unit and only 3K on the lower level.  The smaller unit is essentially like a studio so didn't cost much to fit up.  House itself didn't need any renovations as it was in great shape.

Investment Info:

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

Purchase price: $450,000
Cash invested: $10,000

First short term rental investment! Extremely unique house shaped like a lighthouse located two minutes walking to the beach and about seven to the train to Boston/Airport.

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

STRs have great value in a city like Boston as we have year-round demand for short term housing due to a diverse economy. This property is in a unique location that allows access to the city and airport while being just a short walk to Revere Beach. Hoping to capitalize on the demand for proximity to the city AND attract seasonal guests when the weather is warm.

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

Found on MLS and offered asking. Could have done a better job negotiating this, to be honest. Upon reflection, the property was on the market for quite some time so probably have room to negotiate a better price.

How did you finance this deal?

Traditional bank financing, 25% down.

How did you add value to the deal?

Repositioned property as a STR. Thoughtfully designed the space to appeal to beach-goers and city travellers alike.

What was the outcome?

Both units have only been active for a couple months, but current rents have already been more than long term rates and the winter months are the least busy in the area. Long term gross rent for property would be around $3,500/month and expecting at least $6,500/month with the STR model during peak demand.

Lessons learned? Challenges?

First property I didn't spend much time in before renting, so there were some kinks to be worked out with the first few guests which resulting in lower than ideal ratings. Worked out all the issues and am now churning out five star reviews, learned some lessons for the future! This is also the first property where I assembled a small team to help with cleaning, repairs, and snow removal.

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

I represented myself in this transaction as I am an agent. My portion of the commission enabled me to effectively cancel out the cost of furnishings!

Investment Info:

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

Purchase price: $510,000
Cash invested: $35,000

On market property bought off MLS! BRRRR investment, needed knob and tube replacement, cosmetic upgrades done myself. Appraised Nov. 2019 @ $860K with more room for upside (Green Line subway extension coming within 10 min walk in 2021/2022). Bought the week of Christmas so not many people were looking for homes, diamond in the rough! On market deals are possible (although this was 2015)...

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

Got started house hacking a two family down the road and realized the value of that.

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

On MLS, believe it or not! Offered asking at $550K and negotiated down to $510K after inspection with no counter from seller.

How did you finance this deal?

Traditional bank financing, 30yr fixed, 20% down.

How did you add value to the deal?

The house needed full electrical and we worked with our electrician to structure an affordable way to remove and replace the knob and tube wiring. Outside of that, no major renovations were needed, just heavy cosmetic work. Had both the bathrooms retiled and put in new vanities, new kitchen floors, all carpets ripped up and hardwood underneath refinished, painted place myself.

What was the outcome?

Rents adjusted to market rates (with still a bit more room, I have great tenants and give them a little break) with the first floor (2BR) renting for $2,375 and the top floor (4BR) at $2,850. Able to refinance in Nov. 2019 with an appraisal value of $860,000. All in costs after refi are about $4,000/month and rents are at $5,225, so still maintained positive cashflow and was able to take significant cash out via refi.

Lessons learned? Challenges?

Deals can be found on MLS! I enjoy looking in the off season as there's much less competition and a lot of times the owners listing HAVE to sell for some reason. If not, they would wait until the market is busier in spring/summer.

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

I am an agent myself and have some great knowledge about what renters look for when taking an apartment. Was able to work some affordable but effective ideas into this house.

I've been investing in the Boston area for 15+ years and even in one of the hottest/priciest markets can still find cash flowing deals, even on MLS. Trick for me has been knowing rental rates by neighborhood and buying at low demand times (winter).