Alaskan SFR to duplex success!
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Eagle River.
Purchase price: $250,000
Cash invested: $30,000
Purchased as a SFR. Remodeled into a duplex. Lived in top half & rented bottom half. Then moved and now rent the whole thing.
What made you interested in investing in this type of deal?
I wanted to have investment income to help pay my mortgage.
How did you find this deal and how did you negotiate it?
I used a Realtor. It was a fixer-upper, but structurally sound. There were already 2 kitchens and 2 living areas so the remodel was much more economical.
How did you finance this deal?
I used a retirement account dispersal that was allowed for a home purchase.
How did you add value to the deal?
I remodeled it into a duplex.
What was the outcome?
I gained over $100k in equity after the remodel. 80% of my mortgage was paid and now it generates a steady income each month.
Lessons learned? Challenges?
I learned the power of a good house hack before they were called House Hacks.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I highly recommend working with a Realtor. That is why I became one. I learned so much from my Realtor and would not have wanted to do the deal without her.