My first house hack/live-in flip.

2 Replies

Investment Info:

Small multi-family (2-4 units) other investment in Midvale.

Purchase price: $355,000
Cash invested: $30,650
Sale price: $470,000

Initially purchased as a house hack where my family lived in the upstairs unit while renting out the basement. After about 2 years and some moderate renovations I sold the home for a healthy profit.

What made you interested in investing in this type of deal?

I had heard a tin about house hacking and it made a lot of sense to me, so I tried it and it was a success.

How did you find this deal and how did you negotiate it?

I used a real estate agent and the MLS.

How did you finance this deal?

FHA loan.

How did you add value to the deal?

I redid all the landscaping and replaced flooring.

What was the outcome?

After putting in 30k between down payment and renovations, I walked away with approx. 90k in my pocket. 90k/30k= 300% ROI over 2 years. Granted, most of that was due to substantial appreciation in the area.

Lessons learned? Challenges?

I purchased the property from a house flipper that made it look good on the surface, but failed to repair a lot of the internal things like fixing flooring/plumbing/HVAC issues. If you buy a flip, make sure and have a very deep inspection to find these issues beforehand.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Michelle Ballard (RE Agent) and Burt Hoagland (mortgage guy).

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