Updated over 3 years ago on . Most recent reply
First rental property/HouseHack!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in St. Louis.
Purchase price: $224,500
Cash invested: $24,453
SFH rent by the room HouseHack. Added a 3rd bathroom in the lower level. Also made a make shift bedroom for myself in the LL family room. This allowed me to rent out all 4 bedrooms.
Current cash flow $759/mo
Cash on cash return 37.29%
https://www.biggerpockets.com/analysis/rentals/9fa45264-39ca-493b-9ef0-eddb6680c575.pdf
What made you interested in investing in this type of deal?
A great way to start investing by living rent free and learning on a simple deal.
How did you find this deal and how did you negotiate it?
MLS/agent. Offered over asking price, and took out finance and appraisal contingencies.
How did you finance this deal?
Traditional mortgage 5% down. I was able to get a better interest rate by doing 5% down rather than a FHA loan.
How did you add value to the deal?
DIY rehab: Added a 3rd bathroom in the lower level. Also made a make shift bedroom for myself in the LL family room, this allowed me to rent out all 4 bedrooms.
What was the outcome?
Not only am I living rent free, but I am also earning $759/mo in cash flow!
Lessons learned? Challenges?
The rehab was more time intensive than I had imagined. Also, several little unexpected items during the rehab.
