First Investment Property (Househack)
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Grand Rapids.
Purchase price: $133,000
Cash invested: $11,000
A duplex on the Northeast side of Grand Rapids minutes from the Medical Mile and GVSU college campus.
What made you interested in investing in this type of deal?
I was looking for a house as a primary residence, when I was introduced to the idea of house hacking by a friend who was doing it. I loved the idea of a tenant paying my mortgage for me, so I went looking!
How did you find this deal and how did you negotiate it?
I found it through a local investor that I was introduced to, and purchased through a wholesaler that he had worked with in the past. I offered asking price on the deal, because the numbers made sense and the property had a lot of interested bidders.
How did you finance this deal?
Private money using the BRRRR method.
How did you add value to the deal?
Rehabbed one of the two units completely:
- Sand and Stained Original Harwood Floors
- Paint from ceiling to base trim
- New Oven
- New Toilet, Vanity, Sink, and Medicine Cabinet
- Built Shelving in closets
- Deep cleaned exterior and fixed areas of vinyl siding that needed to be replaced
- Stained decks
- Formed off street parking
What was the outcome?
I still live in one unit and rent out the other. A couple unexpected things have come up, but I am still very happy with my investment.
Lessons learned? Challenges?
I learned the value of working with good people around your home. I had cheaped out on a couple things in the beginning either by hiring the cheapest bid, or trying to do it myself. Ended up having to get a professional in to re-do a few of those things, which added time and holding costs.