Long term buy & hold
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $261,000
Cash invested: $12,671
First house hack. Renting out one unit, living in the other. Keeping single family rented out to almost break even on mortgage expense.
What made you interested in investing in this type of deal?
Closer to work and more to do in the area with family. We shared a half hour off of our commutes one way. We also nearly eliminated mortgage expense!
How did you find this deal and how did you negotiate it?
With an agent. Price was fair and we wanted the property so we didn't get too aggressive in negotiation. We got 7000 off asking price.
How did you finance this deal?
FHA loan
How did you add value to the deal?
There is a third floor with two additional bedrooms that need to be redone, totaling 5 in each unit.
What was the outcome?
We have two properties, get experience being a landlord, closer to work, saving time with more to do in a nicer home!
Lessons learned? Challenges?
HELOC taken out of single family in Belmont took way too long, I'll be using another lender next time. Communication was challenging with this particular bank. Tenant would not vacate property after being evicted. We had to wait and sign a total of six addendums. I would try to nibble a little more out of negotiation next time. The fact that we wanted the property so badly made us give a little more than we ordinarily would have.