Small multi-family (2-4 units) other investment in Scranton.
Purchase price: $70,000
Cash invested: $11,000
While renting a small apartment and working two jobs during my senior year of college, I realized I didn't want to rent anymore and began looking for a house-hacking opportunity.
When I told my brother what I was doing he immediately wanted to do the same thing. So we joined forces and within two months had identified and purchased an up/down duplex.
Since then we have been happily house-hacking, living in the downstairs 2br unit, and renting out the upstairs 1br unit to a friend.
What made you interested in investing in this type of deal?
I was no longer interested in paying rent, and I was very interested in the idea of living in a house I own for free!
How did you find this deal and how did you negotiate it?
I found the listing FSBO on Zillow. After the initial conversation and then walk-through, we made a low but fair offer. The seller countered at the number we really wanted to be at and we signed the contract the next morning.
How did you finance this deal?
My friend, Tyler Kight, is a mortgage broker in the Philadelphia area and he hooked us up with an FHA loan that worked perfectly for our situation.
How did you add value to the deal?
Large tree removal & trimming
Decorative landscaping added
Heating system added to the detached garage
What was the outcome?
We're still happily househacking and building equity to eventually refinance, get our cash, and put it into the next deal.
Lessons learned? Challenges?
The FHA loan approval process can be very nitpicky - but the small amount of cash needed is a major plus for young people and beginners low on capital.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
My friend Tyler Kight at Apex Home Loans absolutely rocked the whole mortgage process - I highly recommend him!
@Kyle Kerekes Congrats on the purchase! You mentioned Philly, did you get a duplex in or around Philly? I'm also looking to house hack here in the near future. I'll have to look into your friend as well. Cheers!
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