House hack turned buy and hold

[Bethany Turon]

Investment Info:

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

Purchase price: $186,000
Cash invested: $6,000

Duplex built in 1885, originally purchased to house hack, now both sides are rented.

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

Loved the idea of having a second unit help pay my mortgage.

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

I used a standard agent. Not below market but appreciation has really made this house worth it.

How did you finance this deal?

FHA with 3% down.

How did you add value to the deal?

I lived in the house for 3 years when I first purchased before moving halfway across the country.

What was the outcome?

Right now it’s cash flowing very nicely and there is high demand in the area.

Lessons learned? Challenges?

I bought this property at the peak of the housing bubble, so for a year or so I had negative cash flow. I was able to refi for free with a government program at the time which lost 3 years on my mortgage but made it much more financially viable. initially I WAs my own property manager which worked well, but had to use a company when I moved away. This is where I learned the hard way the importance of having a good manager. For about 3 years I had a company who kept giving me horrible tenants.