FHA House Hack 4-Unit
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $260,000
Cash invested: $22,925
Sale price: $260,000
FHA 5% House Hack
6.75% Interest
$13,000 Down
Bought with investor/friend, will be living in 1 unit together, renovating them, and hopefully repeating that process within the first year to keep remodeling units with no vacancy cost.
Will be paying $52.50/mo for rent (Not including utilities), for the first year and then making $158/mo each (16.55% Cash On Cash Return) Year 2.
What made you interested in investing in this type of deal?
Usually use investors, wanted to park some of my own cash into real estate instead of stocks.
How did you find this deal and how did you negotiate it?
For sale by owner on facebook marketplace. Got it for 10,0000 less than asking.
How did you finance this deal?
FHA LOAN.
5% down.
Partnered 50/50 with friend/investor.
How did you add value to the deal?
Will be moving into 1 unit, and renovating each unit. $10k each into 2 of the units.
What was the outcome?
About to close.
Lessons learned? Challenges?
Getting the right lender is Important.