My First investment property. House Hack!
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $165,000
Cash invested: $20,000
I bought a duplex in Racine that needed a lot of cosmetic upgrades. Both units are spacious 2 bed - 1 bath units. The units were in rough shape before we worked on them, but after the work was complete it turned into a good first investment.
What made you interested in investing in this type of deal?
I needed to buy my first investment and also needed a place to live.
How did you finance this deal?
Adjustable rate mortgage, 10% down.
How did you add value to the deal?
I added value by rehabbing both of the units inside the property
What was the outcome?
I gained equity in the property, and I got higher rents which lowered my living expenses while living there.
Lessons learned? Challenges?
There were many lessons learned in the process of my first investment. I learned I could have negotiated better on the property. I learned new things to look for during inspection, and I also learned a lot about the overall process of buying a investment, and what I could do better the second time.