1% rule cashflowing on MLS still exist

[Kyle Reece]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $238,000
Cash invested: $2,198

House hack duplex, apartment brings in $900 when purchased market rent is $1200 for that unit currently raised to $1000. Will increase over next couple years unless tenant moves out. Main house would rent for $1500 if we were not living in it. Currently renovating main house to add some equity and pull out some money

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

Cashflow

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

MLS, low competition, only person offering

How did you finance this deal?

FHA

How did you add value to the deal?

House Hack, renovating vacant main house

What was the outcome?

1% cash invested, COC is insane and cashflow once we move out will be $600+

Lessons learned? Challenges?

Time estimates for materials extended as the year went on, should have ordered earlier for cabinets, countertops, etc.

[Michael K Gallagher]

Fantastic deal and congrats! You said its a duplex but also mentioned a main house...I'm really curious is this a main house plus a carriage house or ADU type of building?