Updated over 3 years ago on . Most recent reply
My First Deal/House Hack
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $280,000
Cash invested: $19,000
This was my first deal. I purchased it off market without an agent and I am very proud of the outcome. This is a duplex in Grand Prairie, Texas. I house hacked this property and this will turn out to be a cash flowing asset after the 12 month seasoning period.
What made you interested in investing in this type of deal?
I fell in love with the idea of becoming financially free through real estate 2 years ago. An FHA loan seemed like the most accesible way to get started. And the idea of getting a multi family with this loan seemed to be the best bang for my buck.
How did you find this deal and how did you negotiate it?
I reached out directly to the seller. I found the property off market and went through the whole process without an agent even though it was my first deal.
How did you finance this deal?
Through an FHA Loan and 3.5% down payment.
How did you add value to the deal?
This was a value add deal. I purchased the property for 280k and it was appraised at 315k. It needed a lot of cosmetic work and the right management, which I am doing most of it myself.
What was the outcome?
I am currently living for free and after the 12 month seasoning period I will be moving out and receiving 1k of cash flow before expenses.
Lessons learned? Challenges?
It is not as hard as I imagined. This is where the real work begins. Make sure to treat your business like if you have 100 units, so when you get their you will be prepared.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I didn't have a real estate agent, my lender was Amerisave. I didn't have the best experience but they got the loan closes.