Just sold my Househack after 3 years for a solid profit!

[Jonathan Bombaci]

Investment Info:

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

Purchase price: $339,000
Cash invested: $27,000
Sale price: $425,000

House-hack - it’s a legal duplex that we live in. Our unit is 3 beds 2 bath. The 2nd unit is a legal in-law apartment, 1 bed 1 bath with separate utilities that we rent for $700. It’s not a ton but it helps offset the $2000 a month our mortgage.

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

It was a unique 2 family home in the town/area that we wanted to live in. The extra income made the home affordable but we did not live for free.

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

Found on MLS - negotiated price down $10k and then got another $10k off from inspection items

How did you finance this deal?

Traditional residential loan with a local credit union. They had a 5/15/80 program. So we put 5% down, got a 2nd mortgage for 15% and then a 1st mortgage for 80% which was pretty great.

How did you add value to the deal?

We updated the bathroom, replaced the deck and the fence.

What was the outcome?

Lived at a discount for 3 years and then sold for a pretty solid profit.

Lessons learned? Challenges?

It was a good property but I wish we househacked something bigger like a 3 family or a 4 family so instead of selling it (even though we made a profit) we could have kept it and added to our real estate portfolio

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

I am an agent and I represented myself in the transaction.