House Hack in Oregon by Investor/Realtor
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Silverton.
Purchase price: $362,000
Cash invested: $7,200
Purchase price $293,400 through an FHA 203k rehab loan. 3.5% down payment and $13,500 of my closing costs paid by the seller and my 2.5% realtor commission contributed to the down payment. $60k major remodel. negotiated 30k off original offer. Cash flows very well now. Straight off the MLS.
What made you interested in investing in this type of deal?
Everyone should be house hacking.
How did you find this deal and how did you negotiate it?
MLS, multi offer situation. Inspection was done by previous sale fail but I still had my own inspector come out. Found alot of attached carport dry rot and negotiated the seller down 20k + seller paid closing costs. Experienced negotiator through evictions experience and realtor experience.
How did you finance this deal?
FHA 203k Rehab loan. (not recommended unless you have a contractor that is willing to do alot)
How did you add value to the deal?
converted office to bedrooms and extended carport to include 2 cars per unit. Also separated yards to better allow pets and charge pet rent and premium rent. other regular cosmetic rehab.
What was the outcome?
Appraised at $390k and receiving higher than expected rents due to great location and pet allowance.
Lessons learned? Challenges?
Have your circle be experienced in rehab loans before getting in..
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am the agent. Used a regular lender. Convinced the contractor to do the large renovation through this type of loan by offering to do the extra paperwork and planning associated with this type of loan.