1305 Hammond Avenue - Purchased 4/13/20

Investment Info:

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

Purchase price: $148,000
Cash invested: $7,400

Currently house-hacking this duplex. There are two 2bd/1ba units at 950 sq ft each. I purchased right before the Pandemic so got a great 2.875% rate. PITI is $870 then utilities are estimated at about $300/mo. Have had quite a few expenses so far. Bottom unit renting for $1,000/mo and I have a roommate upstairs paying $300/mo. Saving for expenses from my current 9-5 job. Debating whether to move out from upstairs as upstairs unit could also pull in $950-$1000/mo.

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

Move out of old apartment, stop paying rent, start building wealth, have projects to work on.

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

Just on the MLS. Not much negotiating. I think the reason it wasn't selling was because of the downstairs tenant as they were very angry and pushy when we walked through the property. I explained I was looking to purchase the place and just eased his nerves and let him know I wouldn't be evicting him and built the relationship from there.

How did you finance this deal?

Northshor Bank in Duluth. First-time homebuyer deal.

How did you add value to the deal?

Have added room to the upstairs unit by changing hinged doors to barn doors. Updated the thermostat system to be Wifi accessible. Re-did all the windows that had rotted boards on the property. Added washing machine to upstairs unit. Painted front porch for curb appeal.

Lessons learned? Challenges?

Always look at a roof thoroughly even if it's only 9 months old. I've run in to multiple leaks as the previous contractor that did the whole roof did a terrible job.

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

Brittany Kuschel and Rod Graf that work for Edmunds Company in Duluth MN.