House Hacking A Duplex In Seattle WA

[Todd Baldwin]

Investment Info:

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

Purchase price: $900
Cash invested: $100,000

My wife and I currently live in a Duplex, and we rent out the other side. We also converted one of the garage spaces into a studio. After living completely for free, we cash flow $1,800 per month.

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

This building is great! Traditional duplex but both garages are equipped with kitchenettes. I converted one garage spot into a studio, making it a triplex! In total this building has 5 bedrooms and 7 bathrooms!

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

It took me 12 months to find this deal. It was listed at $950k, I got it for $900k and negotiated the addition of two kitchenettes.

How did you finance this deal?

10% Down, bought it as a primary residence.

How did you add value to the deal?

Converted one garage into a hipster studio.

[Michael Haas]

WOW - what are the rents? My rough back-of-the-napkin math had you needing to be at $4,800 a month for one half the duplex and $2,000 a month for the studio to be cash flowing $1,800 a month and living for free, and that was before CAPEX/Repairs. Those rents seem really strong to me, even in the hip parts of Seattle so I'm curious how you got there.

Nice work!