Small multi-family (2-4 units) buy & hold investment.
Purchase price: $305,000
Cash invested: $300
Bought this house with $0 down, minus the cost of the appraisal. My wife and I will be owner-occupying until we decide to move into another property, or it makes more financial sense for us to look elsewhere.
What made you interested in investing in this type of deal?
Since a senior-year class in high school with a teacher who said the words, "the smartest thing to is buy a duplex as soon as you get married, and live in half until they're ready to move out and rent both units." We moved into a basement apartment where we settled into rent for at least a year while we saved up some cash. We saved the cash quicker than we expected (even though we never needed) and our landlords helped get our 1st deal.
How did you find this deal and how did you negotiate it?
We had an email update us with deals posted the day earlier arrive every morning at 4:00 am. I'm an early riser so every day I would get up and analyze anything compelling that came on. There were higher offers on the property, but because of the mutual relationship that we had with the sellers, they took our offer.
How did you finance this deal?
Utah housing loan, with common plans to refinance in 12 months-BRRRR method!
How did you add value to the deal?
Currently mudding/taping/texturing/painting several rooms that weren't completed very well. Framing out the separate entrances. Shiplap on ceiling in one room. Basic landscaping on front and backyard. Exterior upgrades like siding, paint, caulk in foundational settling cracks, etc..
What was the outcome?
A great property!
Lessons learned? Challenges?
Keep an eye on leads and maximize the amount of leads coming in
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, the landlords we rented from for 6 months helped us prospect, analyze, and close the deal. Haley and Graden Ostler.
Very cool Chris! I remember looking at this house. I'm glad a young couple looking to house hack got it!
@Graden Ostler you're famous!
Thanks Becca!! It’s pretty incredible we got a zero down owner occupied multi family loan.
Very cool deal! I think this is such a good strategy in our market right now!
Kind of a crazy update... This is the basement were my maternal grandparents moved in when they got married in '64! It looks very different now, but mentioning the address to my grandparents we made the connection.
Anytime you can house hack and keep your head above water in Provo is awesome. There are lots who want to do the same and can't find the deal so congrats. I have a couple Provo condos but have yet to find a good house in Provo.
Congrats on the new property!! I love the exterior colors!
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