First Duplex & House Hack in Tacoma!

1 Reply

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.

nice job, you may want to plan the financing/debt portion so you can do your subsequent deals with ease because now that you've tied up your FHA you will be limited as 2nd FHA loan has plenty of restrictions.

You can refinance your current FHA into a conventional and free up your FHA option or you can just go ahead and use conventional going forward for your subsequent purchase.

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