3rd house hack!

[Justin Albrecht]

Investment Info:

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

Purchase price: $109,000
Cash invested: $10,000

Contributors:
Logan Laperriere

My 3rd house hack and biggest fixer-upper project of my career. I'm excited to force some equity into this duplex by renovating both kitchens, both baths, new paint and new flooring all around.

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

I was able to buy this house with 5% down and when its fixed up and rented, the other tenant will cover almost all of the mortgage.

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

Zillow

How did you finance this deal?

W2 job

How did you add value to the deal?

This duplex needs a lot of work including two new kitchens, two new baths, flooring and new interior paint. It needs trees trimmed, a deck installed and exterior landscaping. Most of these i can do myself to save costs and build huge equity.

What was the outcome?

still working on this :)

[Justin Albrecht]

Thanks @Helen Adeosun!! I invest in Kalamazoo, Mi.

I believe you can only get one FHA loan at a time so if you wanted to leverage the 3% down payment again that the FHA allows you would need to refinance out of that loan first and then you would qualify for that loan type again. I still have an FHA loan on my first property so now I leverage the conventional/conforming loan (fannie and freddie) that allows for 5% down if you buy the property as a primary residence (single or multifamily). Otherwise, you'd be looking at 15-25% down for an investment property.

If you live in the house for at least 12 months you can save HUGE on a down payment amount. :) 

Hope that helps!