Three unit rehab and house hack as a beginner
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $526,000
Cash invested: $56,000
Three unit that needed a rehab. Completely updated, living in one unit and renting out the other two with a decent cashflow that will increase significantly when I move out and rent the third unit. All work was done myself with the exception of flooring.
What made you interested in investing in this type of deal?
I am active duty military, separating at the end of 2021. I have been a real estate agent for 7 years on the side and decided I wanted to settle down in Maine and start investing here and wanted my first multi unit before I completely separated from the Military.
How did you find this deal and how did you negotiate it?
Being an agent, I was able to find the property in the MLS and make an offer. I offered no inspection contingency and that was enough for the seller to accept.
How did you finance this deal?
FHA 3.5% down of my own money.
How did you add value to the deal?
Completely gutted and updated the units.
What was the outcome?
Great tenants and exceptional rental income.
Lessons learned? Challenges?
I quickly learned to not go overboard with rehab expenses. I typically want the best, top of the line products but I had to learn how to choose laminate over granite countertops, vinyl plank flooring over hardwood, etc...