House Hack Salt Lake City
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $328,000
Cash invested: $11,480
2 bed 1 bath side by side duplex. Both have large private patio. One unit also has large fenced in backyard. One unit is rented for $1,250 and the other will rent for $1,300 once I move out) Will cash flow around $150 once I move out.
What made you interested in investing in this type of deal?
I wanted in to multi-family investing. At the time of the deal I still held my former W-2 paying job while just getting my real estate license. I figured it would be a perfect time to utilize a traditional loan while my income, credit, and debts were in line. I knew once I left my job it would take me at least 2 solid years of being a realtor to get a loan. So I took action. I found the deal on the MLS, represented myself as the buyer with my new license and successfully closed the deal.
How did you find this deal and how did you negotiate it?
I am a local real estate agent and used a hotsheet for multi-family searches. I represented myself as the buyer using all commission towards the down payment.
How did you finance this deal?
FHA 3.5% down
How did you add value to the deal?
Covering most of down payment with agent commission. Also, we are doing minor cosmetic upgrades to our side of the duplex (paint, new carpet in bedrooms, light fixtures) to keep up with higher market rents.
What was the outcome?
Live for less and cash flow once moved out.
Lessons learned? Challenges?
Finding the right tenants makes managing much easier. It was a good first approach on getting into investing. Next unit will most likely be bought through a wholesaler to make the deal strengthen.