Small multi-family (2-4 units) buy & hold investment in Manchester.
Purchase price: $340,000
Cash invested: $9,000
Ryan Weiss began house hacking in September of 2019. He purchased a three-unit multifamily using an FHA loan. He currently owner-occupies this property and has his mortgage completely paid by the rents he collects.
What made you interested in investing in this type of deal?
I knew that house hacking was a great way to get started in real estate, but I had no idea how accessible this method of investing is. With a small down payment due to FHA financing I am now living rent-free, and the rents I collect completely cover my mortgage!
How did you find this deal and how did you negotiate it?
I found this deal through the property management company I previously worked at. I began by asking my broker if any of our investors would be willing to sell me their small multi-family. One of our investors said they would like to sell their triplex so they could do a 1031 exchange into a larger property. They presented the price and I happily agreed, and they were successfully able to upgrade to a seven-unit. Win-Win!
How did you finance this deal?
FHA financing with only $9,000 out of pocket! I requested $5,000 back from the seller at closing and received $9,500 in down payment assistance from the state of New Hampshire.
How did you add value to the deal?
I chose to live in the worst-condition apartment and perform a "live-in-flip." Since living here we have painted every room, upgraded all light fixtures, replaced the tub surround, added a dishwasher and some new cabinets, and we have done some other miscellaneous repairs.
What was the outcome?
I'm living rent-free and loving it! Saving up cash now for my next deal.
Lessons learned? Challenges?
Evict trouble tenants early, don't delay. Don't be too picky about your first deal, just get in the game! Ask and you shall receive, just don't forget to ask. Your goals are much closer than you realize.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with Elizabeth Going as my mortgage specialist and she is awesome!!!
@Ryan Weiss great job!
Great story! Keep up the good work
Congratulations Ryan! That's a great approach, asking about off-market deals. Well done.
@Ryan Weiss awesome!
@Ryan Weiss Nice work definitely a NHRIA deal of the month.
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