House Hacked Duplex with Great Cashflow
Investment Info:
Small multi-family (2-4 units) other investment.
Purchase price: $89,000
Cash invested: $48,000
Duplex that we House Hacked. Put 20% down + 30k in rehab expenses. Cash flow is $800 per month. ARV is $170,000. We haven't fully executed the full BRRR but are considering.
What made you interested in investing in this type of deal?
I wanted to get started in REI and also reduce living expenses. This duplex checked both boxes.
How did you find this deal and how did you negotiate it?
I went to a showing when the house was listed at $139k then waited 1 year till the price eventually dropped to $89k. My wife and I offered that day.
How did you finance this deal?
FHA 30yr at 3.75%
How did you add value to the deal?
Completely rehab of the interior of the house.
What was the outcome?
Great first home for my wife and I with continued cash flow since we've moved out.
Lessons learned? Challenges?
Always add a 15%+ cushion to a rehab project! After passing inspection we had to replace every inch of plumbing in the house. Also, if house hacking with a spouse, make sure you communicate expectations early and often. Stress adds up so it is important to be on the same page.
Most Popular Reply
@Brandon Sok Great work! This is exactly the way to do it!