Small multi-family (2-4 units) buy & hold investment.
Purchase price: $118,000
Cash invested: $15,750
House hacking the first year. Expected cashflow while fully rented after renovation is $456.20/month. Upgrades include fully remodeled kitchen (stainless steel appliances), partially remodeled bathroom, new carpet, new doors, new landscaping, new paint, and waterproofed basement.
What made you interested in investing in this type of deal?
House hacking made the most sense for me at the time, and this property had one vacant unit with value add opportunities.
How did you find this deal and how did you negotiate it?
Found on MLS. Standard negotiation using agent. Note* seller was the agent on the property as well.
How did you finance this deal?
FHA 3.5% down. $7,600 out of pocket at closing.
How did you add value to the deal?
Real value add was in the kitchen's. Fully remodeled one kitchen while living in the unit. Also remodeled bathroom, new carpets, new doors, fresh paint, new landscaping, updated all electrical. Updated second unit a little at a time while tenants were still under lease.
What was the outcome?
Before purchase units were renting between $650-$700 per. After renovation units are renting for $850 per.
Lessons learned? Challenges?
I learned that there should be an order of operation to these renovations. Certain items need to be ordered first and timing is key to efficiently finishing each job. I didn't order some materials for the kitchen when I should have which caused a delay in completion.
What a great investment! Thanks for sharing!
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