This is my first property I bought for my portfolio, which I'm currently house hacking. Once I move out, this property will be cash flowing $385 monthly. Maintenance, Management, & Vacancy are all factored in @ 10%.

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

Since recently graduating, I knew I wanted to get out of my mom's basement as fast as possible. After studying REI and staying in tuned with BP, I knew house hacking a duplex was the way to go.

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

I found this deal through the Realtor.com app, or you can say the MLS. Asking Price: $89k. I shoot an offer of $75k and got countered with $89k (Seller pays closing cost) or $86k (Buyer pays closing cost). I tried negotiating $80k (Buyer pays closing cost), which got countered to $85k. We both agreed and signed the offer papers for $85k (Buyer pays closing cost).

How did you finance this deal?

Shockingly, after 3 different lenders, I found the best interest rate and the best deal a loan could offer. I locked in an interest rate of 4.5%, down payment of only 3% for conventional, and this mortgage DOES NOT require a PMI payment monthly. Shocking, right?

How did you add value to the deal?

Since I'll be living on one side for a year, I have the opportunity to see what a tenant is going to like or dislike when living in this unit. Therefore, I will be able to fix and update the one unit to appeal some long term tenants.

What was the outcome?

Outcome of this property was to finally get me into the market of REI, and get me out of my mother's basement at the age of 22. They say the first deal is the hardest and I truly got to see that side. Now that I've been through the process, I know who I want to work with, the properties & areas I truly want to buy in, and how to make the closing go more smoothly.

Lessons learned? Challenges?

1. Shop around for the best lending options. Don't settle on one lender. My first lender told me I needed 15k in my bank account and an interest rate of 4.75%. I closed with $3,750 with an interest rate of 4.5%.
2. Find a realtor you can be open with and have fun with. Yes, there is a professional side of this, but you want a realtor you can be open with and can joke with. Also, find one that is proactive in not only just their emails but texting too. Texting is a faster approach

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Ruhl & Ruhl Realtors out of Quad Cities IL/IA.
Ruhl Mortgage out of Quad Cities IL/IA.
TBK Bank out of Quad Cities IL/IA.
Insurance Broker, Blake Driskell out of Macomb, IL.

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