Buying Your Rental Two-Family

A series of case studies in which I share, step-by-step, how I help all kinds of buyers and sellers reach their real estate goals. Whether you're downsizing, out-growing a home, or house hunting for the very first time, I know the challenges, and I know how to help you through them! Below, Buying Your (Two-Family) Rental in Somerville, MA -

How We Met 

I met Buyers M&N during COVID. They came to me interested in buying their first place; they were renting in Somerville and their two kids were in school. They knew they definitely wanted to stay in Somerville until their kids graduated, but their landlord was thinking of selling their current rental and they had to make a move. 

Clockwise from upper left: the Somerville two-family home, for rent, the Somerville two-family - side view, kids during COVID.

The Search 

We went out and looked at several properties - not easy during COVID - and we actually found something they liked. But at that time the competition was just too fierce. M&N were not comfortable making an offer and having to waive contingencies and home inspections just to be considered. It was a tough time for buyers. 

We ended up finding them a new rental close to where they had been living, and they put their search on hold. 

Fast forward to 2025, M&N reached out to me to tell me that their current landlord was now selling the two-family that they had been living in - upstairs - for the past five years. However, this time, the landlord had offered M&N the opportunity to buy the house - both units in a two-family property. In the end, not much of a search - their home found them! 

The Challenges

The landlord approached M&N with the price, and they called me right away to assess whether their landlord was offering the property at fair market price. 

In this case, Buyers M&N were looking for buyer agency representation; they had never bought a property before and they knew that the Seller had their own agent. They did not want to go into this purchase process without having the right people on their side as well. I was flattered that they'd thought of me.  

I did a lot of research on comparable sales in the neighborhood and, more broadly, on two-family properties in Somerville. I also looked into other data, such as what the Seller paid for the house and how long he'd owned it. 

We also had a little “inside information,” in the sense that since M&N had been tenants in the property, they knew what work and updates had been done to the house since they’d been living there (and also what had not been done). They knew the neighborhood and (key for Somerville) the parking situation.  We had photos of their apartment from when they’d moved in, as well as photos of the downstairs unit. We knew the rents for both units, and we even had a sense of the utility costs for both units as well. 

Anyone thinking of buying a two-family, as an owner-occupant or an investment, should consider all these issues and try to get as much of this information as possible - but it’s not always easy.  If you haven’t got the right Buyer's agent, or the Seller’s team isn’t forthcoming, or the information just isn't out there tracking down all the numbers can be hard. The fact that M&N had been tenants, and had hired me as a buyer’s agent on their behalf, really helped them gather the knowledge they needed to make a good financial decision. 

It turns out that the off-market price the landlord was asking for the property was high. We looked at all the data and decided to make an offer that more suited the condition and location of the property. We weren't sure if the Seller would accept. At the end of the day, I counseled M&N to make the best offer that was right for them, regardless of what the Seller was asking for the house. 

As Buyers, M&N were in a unique position; the property might not make financial sense to a wide range of other buyers. Both units had leases in place, therefore the property could not be delivered vacant. In addition, the rents were currently well below market rate, while the interest rates on a mortgage were high - too high to generate immediate cash flow on the property. On paper, the property did not look like an easy investment. But for a long-term owner-occupant, such as M&N, they could buy the house with a smaller down payment and a better interest rate. They could live in a home they loved, they could start earning equity for themselves, and then have the benefit of rent coming in from the downstairs unit as well. M&N were the ideal buyers for this property - but would the Seller appreciate that? 

I connected M&N with one of my preferred lenders and they got pre-approved. I was, indeed, able to negotiate a better sale price with the Seller’s representative. The closing went relatively smoothly, as the lender had all the information they needed from M&N and were ready to close in 30 days.  

The Outcome

Buyers M&N, and their kids, didn't have to move from a home and a neighborhood they knew and loved. Plus, they were purchasing a property with a tenant in place, with a lease for at least the next 6 months. The rental income coming in would help them with the mortgage payment. They are building equity every day they own the house, and if at some point they decide to move, they have a nice investment property to hold on to for the future. 

"This was our first time working with a realtor and trying to buy a home. Jennifer walked us through the process, she was patient and answered our many questions along the way. She was respectful of our decision, professional, and wonderful to work with!" - Buyers M&N, Somerville, MA

For this and all my online reviews, please see my Google Business page. For more case studies of how I help buyers and sellers, explore my whole series Behind the Before & After | Buying & Selling.