First House Hack (Spring 2019)

[Bryon Andrews]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Stillwater.

Purchase price: $262,900
Cash invested: $15,500

Unit 1 - 4 bed 1 bath. Unit 2 - 2 bed 1 bath. House hack with a FHA 3.5% loan. Lots of cosmetic rehab done by myself to rent out the 4 bed unit for $2,000/mo. Total monthly expenses are just under $1,800. Unit 2 will rent $1,200/ mo when I move out.

What made you interested in investing in this type of deal?

Listening to the Bigger Pockets Podcast and still having the college mentality of being able to live in a duplex with someone else sharing a wall.

How did you find this deal and how did you negotiate it?

Found the deal on the MLS and made a full price offer the first day it came on the market. Seller paid closing so I was able to get cash to close.

How did you finance this deal?

3.5% FHA as well as seller paid closing.

How did you add value to the deal?

Lots of cosmetic updates in the units by myself.

What was the outcome?

Living rent free and will cash flow $1,400+/mo when I move out.