First House Hack is in The BOOKS!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Holt.
Purchase price: $145,000
Cash invested: $10,174
Long story short this property was listed as a single family on the MLS and unless you scrolled through pictures you wouldn't of even been able to tell it was a duplex. The only reason I'd include SFH in my search is because I knew you'd find a mother in law suite every now and then. I like to think this held off other investors from mauling over it and the reason we were able to get this bad boy 10k under asking (which is super rare in my area rn along with most) but who really knows 🤷🏼♂️
Strategy: House Hacking
Purchase Price: $145,000
Loan: Fha 3.5% down @ 2.75% interest
Income: $1,850 (after we move)
PITI: $1,050
Utilities: $125 for water
Reserves: $220 (Cap X 5%, Maint. 5%, Vac. 2%)
Cash Flow: $455 (after we move)
Initial Investment: $10,174
NWROI: 107% (rent savings + loan pay down / initial investment)
COCROI: 54% (assuming our side will rent the same)
What made you interested in investing in this type of deal?
After reading Craig Curelops "The House Hacking Strategy" I was pretty determined to make it happen and save money each month!
How did you find this deal and how did you negotiate it?
Found it listed as a single family on the MLS as I described above and negotiated with my realtor.
How did you finance this deal?
FHA baby!
How did you add value to the deal?
My good looks of course. Lol no this property is as turn key as they come!
What was the outcome?
to be continued... haha no seriously I just accepted my first tenants so still pretty fresh. Lets just hope they pay rent on time!
Lessons learned? Challenges?
Have patience when markets are at record highs and inventory is low.. Challenges was basically smoking mirrors. Had to stop over analyzing and thinking of every possible thing that could go wrong and trust my gut.