My First Ever House Hack and REI property

4 Replies

Investment Info:

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

Purchase price: $160,000
Cash invested: $8,600

My first ever real estate Investment! This duplex has been a house hack for me. I used an FHA 3.5% down mortgage, after every thing my mortgage comes to about $1,100 and the other side pays $850 in rent! A great example of how house hacking can cut your expenses with very low entry fee.

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

I think any tool in REI that you can get into with low or no money down is a valuable tool and this house hack has been the beginning of that for me.

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

NETWORKING!!! I started going to the local meet up here in Tallahassee and after about three months and making my interest known (very important). I bought this property off market from the founder of the RE meetup.

How did you finance this deal?

FHA 3.5% down mortgage. What makes house hacking so appealing.

How did you add value to the deal?

This is a little different than most added value for individuals. The way this property has added value in my life is it is going to be my own personal storage unit while I travel the world for a year (and additional rental unit).

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Keller Mortgage is the lender I used and surprised me with the low rates. I was given a 4.25% interest rate on the mortgage when most of my pre-approvals were coming back 4.5% or higher.

Tyler, Congrats on your first real estate transaction. It looks like Camille/Mark bought the duplex in 2017 for $82k, did they renovate it before selling to you? How hard is it to rent in this area, I ask b/c I've always been hesitant to buy that far North? Was the financing owner occupant or investment?

@Mike Conner I did an owner occupant FHA loan! And I have great tenants in the other side of the duplex but I haven't had to screen any yet because they were in lease when I bought it. But it is a popular place based on the traffic I am in each morning and night. I think there is a good bit of people that work in Tallahassee that like to live in the outskirts. Also yes They flipped the property then She house hacked it and then sold it to me!

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