Buy and hold this: 13 Jordan Road, Billerica [Update: Sold $55,100 over asking]
Screenshot from MLS #72465683. All credits due to the listing agent, Jennifer Kannan of Century 21 North East.
This just came on the market today- 13 Jordan Road, a 2-family in Billerica.
Asking: $459,900
A 2 family property, or duplex, in Billerica is rare. This one is a legal conversion that pre-existed before the current zoning bylaws that would only allow single families in the Village Residence district.
The condition of the house is great - perfect for new investors that don’t want to take on a huge rehab project for their first investment.
These are the numbers that I’ve pulled.
Income
This property has 3 bedrooms in one unit, and 1 bedroom on the other. The combined annual income is $46,800 (excluding probable repairs).
Market value
Looking at comparable sales, the market value of this property could be a little higher, at $470,000. This means that you’ll get an equity gain in this purchase.
CAP
CAP rate is 11%. This number does not account for repairs needed during tenancy, nor any interest you pay on your loan, but it is a good number to begin with considering that buy and hold investments allow you to take depreciation deductions in your taxes over 27.5 years.
Overall Take
Billerica is an up and coming town with a stable housing inventory that commands good rental income. I expect the land to show healthy appreciation in the near future.
I love that it’s nicely situated between Tewksbury, Wilmington and Billerica, which means that you’ll get to tap into a larger pool of tenants from these towns. That said, being further inland from a highway, it would be a tad inconvenient for commute on the highway on a daily basis.
Still, a starting CAP at 11% is amazing!
Below, screenshots from MLS #72465683. All credits due to the listing agent, Jennifer Kannan of Century 21 North East. She did a great job with this listing - professionally shot photos and sufficient details on the cover page that isn’t too overwhelming to the reader. My only comment is that the finished area, according to town records, is larger than reflected- 3,158sqf instead of the listed 2,856sqf.
