Small multi-family (2-4 units) buy & hold investment.
Purchase price: $187,000
Cash invested: $8,000
I house hacked this duplex. Purchase price was 207k but we negotiated 20k in cash back at closing for improvements. Current tenant on second floor pays 1250 a month and after improvements I estimate to get 900 per month for the bottom unit that I currently occupy.
What made you interested in investing in this type of deal?
I wanted to try a house hack to save on living expenses and gain experiences managing a rental.
How did you find this deal and how did you negotiate it?
MLS through a realtor.
How did you finance this deal?
How did you add value to the deal?
Sweat equity and hiring contractors.
What was the outcome?
Still in progress!
Lessons learned? Challenges?
I am learning the challenges of managing contractors. Be ready to be patient if you haven't done this yourself.
Knowing everything is negotiable -- I negotiated 20k cash back at closing which was really imperative for improving the property!
Sounds like an awesome deal! I just got done going through the growing pains of learning how to interview and manage contractors for a project on my personal residence. One of the benefits I've found with the guy I'm using is that he provides me with line items for every purchase he makes. I see check numbers and exact amounts and receipts for each purchase so I know exactly where my money is going and when. I've heard this is not the norm, but after doing business with him, I can't imagine not having that level of transparency. He also is happy to work the timeline around us doing a lot of the stuff ourselves and putting in sweat equity--he was clear that it would slow down the job, but if we didn't care, he didn't care. I actually had another contractor (who we didn't use) tell us that we couldn't to the painting or tile work ourselves if we used him because he guaranteed everything on his job.
Nice negotiating! Monthly income sitting at 1.1% makes me think it's a really nice neighborhood so you got a steal. Good luck with everything!
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