Large Single Family - Psuedo Multifamily

5 Replies

Investment Info:

Other buy & hold investment in Augusta.

Purchase price: $144,000
Cash invested: $8,000

I purchased a 6 Bed 3 Bath split level home in which I rent the 3 rooms upstairs to traveling professionals via Airbnb and my husband and son live downstairs.

The rent collected covers PITI and Utilities.

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

While I was originally approved to buy a fourplex, there weren't any on the market worth taking. So, I asked my realtor to find me a really big house 5+ bedrooms. Though my path changed, my goal of having three doors under my belt didn't falter!

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

My NACA Realtor

How did you finance this deal?

I went through the strenuous and intricate process of NACA to fund my deal. The $8000 I brought to the table was used for insurance escrow and buying my interest rate down to 2.5%. Please Google the benefits of the NACA mortgage if you aren't familiar.

How did you add value to the deal?

I was able to roll my vinyl privacy fence and driveway extension into the mortgage.

What was the outcome?

My guests make it so that my family and I live for free while retaining a lifetime asset.

Lessons learned? Challenges?

Oh boy! I brought the house from a first time flipper, who did a horrible job on the plumbing. Being that the plumbing exist behind the wall, home inspection nor appraiser caught it. His plumbing mistakes caused my about $12,000 in damages. I had my reservations about buying a house that was completed by someone else simply because I didn't know for sure their commitment to quality. Moving forward, I will likely stay away from flips and stick to renovating the house myself.

@IBEJesus O Prince congrats on your purchase! Sounds like it's working out quite well for your family, and it seems like a unique house given the sheer size.  Kudos on being flexible within your market and being determined to find a deal even when there wasn't an available fourplex.  I'm curious what your future plan is for this property?  

@Jessica Stevenson thanks so much for reading my story and words of encouragement!

Certainly holding the property and keeping it as my primary residence while renting out the upstairs rooms. 

Although I could move out and turn my 3 doors into 6 doors, zoning restrictions require getting permits after you hit a certain number of strangers renting out the same house.

So, I think I will keep the same setup I currently have today.

What a creative solution for an area that's difficult to find multi-family properties in. How is everything going three months later? Happy Holidays!

Originally posted by @Michele Z. :

What a creative solution for an area that's difficult to find multi-family properties in. How is everything going three months later? Happy Holidays!

Hi Michele,

Things are still going well on the house front. My Airbnb postings for my rooms are really detailed and I use the House Rules section to weed out anyone I would likely clash with and so far so good. Each person that has booked has followed my house rules to the Tee and love my home. My husband and I are expecting a baby girl in March so I updated my Airbnb postings to let potential guests know upfront a baby is going to be in the house while simultaneously increasing my prices on my rooms. Would you know I got 3 long term rentals booked like that. Was really expecting the rooms to sit for a while with those updates but I guess most of my guests have families of their own so a baby wouldn't bother them and they simply just love the house and convenience to work and other places so they don't bat an eye at the prices. It's a win win. I've learned to not impose my limits on others, people pay for quality!

@IBEJesus O Prince - how funny, I had no idea I had commented on a post of yours when we spoke the other day. :) I was showing my husband your listings the other day, and he was impressed too.  We're sending you best wishes for the arrival of you new little one!

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