College Station House Hack

[David Schmiediche]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $285,000
Cash invested: $33,500

In May 2024, I purchased this duplex as a house hack opportunity located in the heart of College Station. At the time, rents were below market at $750 and $820, while comparable units were renting for around $1,000. Acting quickly, I viewed the property within 24 hours of its listing and submitted a full-price offer of $295,000 within 48 hours. The seller received multiple offers and agreed to accept mine—on the condition that I waive the appraisal contingency.

The biggest concern was the lack of strong comparable sales in the area. The best comp had sold nine months earlier for $285,000 but was in much worse condition. Another similar property was under contract at $290,000 after receiving multiple offers, but it also needed significant work. While the duplex was clearly worth $295,000, there was uncertainty about whether the appraiser would recognize its condition and justify the price. Ultimately, the assigned appraiser was known for being extremely conservative, and the final valuation came in at $285,000, requiring an extra $10,000 out of pocket to close.

After closing, I raised one tenant’s rent from $750 to $1,180, and they chose to stay. While living in the other unit, I invested $5,000 in renovations and later found a roommate paying $750. With these changes, the property now generates $1,930 in rental income while continuing to appreciate in value. Pictures listed are before renovations had taken place.

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

Opportunity to purchase a property and live rent free while doing it.

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

Active MLS Listing

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Cosmetic renovations, removed popcorn ceilings, replaced cabinets, replaced counter tops with butcher block, new fixtures, and fully interior painting

What was the outcome?

Current residence allowing me to live rent free.

Lessons learned? Challenges?

Doing renovations yourself while living in the place is a huge pain. It would have been better for me to hire this out instead of doing the work myself. Value of time vs the value of money