I closed on a 4plex at 4423 e McLellan rd Mesa Arizona beginning of June for $1 Million taking advantage of Fannie Mae 5% down owner occupied loan to house hack this property. All units are 3bed/2baths. 2005 year built. Excellent location in Mesa!! Close to Falcon Field Airport and north 202 Freeway

All units were vacant but I've already rented two and I live in one so I have only one more unit to rent

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

I love that I was able to use 5% down which is $50K for a $1 Million dollar property that is in a excellent location and community. so instead of me paying rent I can have tenants help me pay my mortgage on a property I own. this property is well taken care of and just had some improvements to the interior units so as all new appliances. fixed drywall and new painting and more.

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

I'm a licensed Realtor and I have alerts on the MLS to let me know when certain properties are active. I was specifically looking for a 4plex with all 3bed/2bath units in a better area. submitted an offer right away on a couple of properties that hit my buy box.

after multiple discussions through text, emails, calls and offers, the seller agreed to $15K in concessions

How did you finance this deal?

utilized Fannie Mae 5% down owner occupied loan. As a Realtor, I negotiated a $15k seller concession I used for a 1-0 buy down so my rate for 1 year will be 5.99% and then revert to 6.99% for 30yrs. and then we used the rest of the concessions for closing costs. in 6 months or 12 months I will revisit to see if mortgage interest rates dropped significantly to justify a refinance to lock in a lower interest rate.

How did you add value to the deal?

This property was purchased vacant and I well get it fully leased up to increase the income. I already have 2 units rented and working on the 3rd unit

What was the outcome?

Closed on a beautiful $1million house hack property with only $50K down and received $15k in seller concessions and now I get to live in a much nicer area and will have tenants helping me pay my mortgage down and if rents and values increase I'll benefit

Lessons learned? Challenges?

first mortgage broker said I couldn't qualify for Fannie Mae 5% down because I had 10 other properties (45 units) and I had to have certain amount for reserves for all the properties based on the debt owed on all of them. I went to another broker to verify and double check. found out he miscalculated. got pre approved. submitted offer & accepted. broker took loan to Rocket Mortgage. last minute had to switch to UWM and got lower rate. HAVE PERSEVERANCE! and don't take no's. trust but verify

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

YES! I'm a licensed Realtor and I represented myself in this transaction and I used Mark Mazzucco with Price Mortgage as my broker who shopped my loan and took me to UWM (United Wholesale Mortgage)