House hack/ buy and hold rental.

[Riley Harrison]

Investment Info:

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

Purchase price: $283,000
Cash invested: $19,000

This investment was purchased as a single family home with an attached in-law apartment. For a short time a have lived in the apartment and rented the home. The property needed some cosmetic work that I have done myself. I was able to negotiate and get a $7000 check at closing for a new roof! Home has already gone up about $30,000 in value since bought.

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

I was interested in this deal because I saw immediate equity as well as a chance to cash flow within a few months of getting situated.

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

I found this deal on MLS, as a weird time right before Christmas when the market was slow. There was some cosmetic work that was needed which helped draw away some competition.

How did you finance this deal?

Conventional financing

How did you add value to the deal?

Fresh paint, new flooring, landscaping, new roof paid by the sellers!

What was the outcome?

Renting today and cash flowing nicely.

Lessons learned? Challenges?

Doing rehab yourself will always take longer than you expect. Things come up and will distract you. If you need the work done quickly it may be smarter to hire someone.