First House Hack in Minneapolis!

[Tucker Mortier]

Investment Info:

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

Purchase price: $343,500
Cash invested: $36,000

First deal! Closed on my first duplex house hack in Windom, Minneapolis in January 2022! Seller covered closing costs. Was able to get into this duplex with awesome terms to help set me up well for the next one!

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

The financial freedom that comes with buy & hold investments. Very stable area in South Minneapolis, 2 beds 1 bath on each side.

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

Found this deal with my agent Matt Bartholomew when it was first listed on the MLS. Waited about 30 days until the seller dropped the price by $20k. Immediately submitted an offer which the seller accepted the same day.

How did you finance this deal?

10% down conventional financing. Was initially going to go FHA but 10% ended up being a much better solution for me. My lender Tim Swierczek was an absolute rockstar.

How did you add value to the deal?

Increasing rents substantially by rehabbing one of the sides. Unfinished basements are holding future value.

What was the outcome?

I will be living in & rehabbing one side and have already rented the gleaming side out to creditworthy great people for $1,550! After satisfying the loan requirements of owner-occupant and rehabbing I will be moving onto a 4-plex!

Lessons learned? Challenges?

Buying this property while living in CO was a challenge. The biggest lesson learned is to stick to your crystal clear criteria, don't rush it, and your chances of success are large!

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

YES! Lender- Tim Swierczek. Agent- Matt Bartholomew. Both Rockstars.

Connect with me on Bigger Pockets!

[Evan Kraljic]

Congrats @Tucker Mortier! I definitely think getting into a duplex in Windom for under 350k is a good buy! I'll be househacking a duplex just up the road from you in the Kingfield neighborhood this next year (moving in soon).

One thing I wanted to remark on from your post about wanting to move into a fourplex. So I've heard that it can be difficult to go up in unit counts when it comes to owner occupied financing (so it's easy to justify moving from a fourplex to a duplex, but not the other way around). When I moved from my first duplex into this next one I justified it to the underwriter by saying it was closer to my work, and I'd be living in a larger unit in a lower crime area. That didn't get any push back, but I wonder if it would have it it was a fourplex I was looking to move into. Anyhow, if there's anyone who can help you get into that next property it's Tim. 

@Tim Swierczek - Is it generally difficult to go up from a duplex to fourplex in a serial house hack situation, or not that hard to convince an underwriter? This question is partially self serving haha, but maybe it will help Tucker too if you guys haven't already discussed it.