First Duplex & House Hack in Tacoma!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Tacoma.
Purchase price: $375,000
Late post, but still house hacking my first Duplex! (2) 3BD/1BA units.
What made you interested in investing in this type of deal?
I am drawn to the idea of replacing my income with passive rental income. In my opinion a cash-flowing property is an attractive way to hedge against slow appreciation/ lack of appreciation in home value. Purchasing multiple units allowed me to find a property as an owner occupant while also achieving strategy.
How did you find this deal and how did you negotiate it?
I went to a couple of events, met some people, and even checked out some properties. In the end it was someone that I met through Redfin. I was receiving email alerts for properties hitting the market and reached out about one. The agent did not actually specialize in multifamily but we connected anyway. A few weeks later he called me out of the blue because a friend of his was selling their remodeled duplex. It was a perfect fit, I purchased 2 weeks later off market.
How did you finance this deal?
FHA
How did you add value to the deal?
I built out some warm storage units in the basement and installed Lutron caseta systems with Ring doorbells and Nest thermostats. These changes generate extra cashflow (the extra storage rents for $50/ space), reduce my utility costs, and the Ring doorbell makes the tenants feel safer.
What was the outcome?
Still on-going, but it has been a very positive experience. When I move on to my next investment the property will generate more cashflow once a future tenant takes my place.
I will be looking to purchase my next property again in the next 2-4 months.
Lessons learned? Challenges?
I believe that I lucked out getting responsible tenants to share the home with. After reading the information I know now, the next time I screen tenants I will be much more thorough. I also will be adding language to my least agreements to better protect myself, property, and tenants.