My First House Hack and the end result
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $228,000
Cash invested: $9,700
My First House Hack. Renovated 2 of the 3 units, increased gross rents from $2110/mo to $2675/mo with more room to grow from the third unit. Made $800/mo when living there with a roommate and it now cash flows $1160/mo!
Goal is to refi in a few months (fall of 2020) to try to see if I can get some equity generated through the two rehabs I did and rent increases.
What made you interested in investing in this type of deal?
I hated the idea of paying the $1100/mo I was paying on my apartment and knew that house hacking was the key to getting into REI for me as a beginner.
How did you find this deal and how did you negotiate it?
MLS, very little negotiation.
How did you finance this deal?
FHA Loan
How did you add value to the deal?
Updated 2 of the 3 units with plans to update the third. Also increased rents from $2110 to $2675/mo
What was the outcome?
Cashflowing triplex in my portfolio!
Lessons learned? Challenges?
Take the inspection more seriously, really dig into a quote to fix issues before buying, and overall, just go for it!