Small multi-family (2-4 units) other investment.
Purchase price: $255,000
- $8,900 Down Payment
-$22,900 Total Cash Invested
Each unit is 3/2 with approx. 1500sf
3 stall garage
Purchase Price: $255,000
Monthly PITI: $1795
Monthly rent from rented unit: $1245
Estimated total monthly rent if both units were rented: $2645
What made you interested in investing in this type of deal?
I had been looking for a house hack to begin my real estate investing career. Of course I would have liked to find where the rent covered all of the PITI expenses but my main criteria was that my monthly expenses were less than or equal to the amount that I currently was paying in the apartment I was renting. I was able to cut monthly expenses from about $1000/month to about $850/month.
How did you find this deal and how did you negotiate it?
I found the deal from a client of mine who was looking to sell a large part of their portfolio.
How did you finance this deal?
30-year FHA loan with 3.5% down payment. Closing costs wrapped into the loan.
How did you add value to the deal?
$13,000 in improvements to the unit I live in. Estimated ARV of $275,000.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
If investing n the Grand forks market, I would highly recommend First International Bank and Trust for any services you need from banking and financing to insurance.
Congrats on your investment! I am on the hunt for my first investment in the area to house hack.
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