Duplex in Iowa City

[Akimi Oya]

Investment Info:

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

Purchase price: $369,000
Cash invested: $8,000

-House hack on a duplex.
-100% financing with $10,000 put into initial renovations.
-Renovations included new LVP floors, cabinets, fixtures, bathroom vanity and floors.
-CAP rate: 6.61%
-ROI= 70% (no money down financing)

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

I was looking for something I could live in while gaining on cash flow. I was able to live in one side of the duplex while renting out the other side.

How did you finance this deal?

I did 100% financing with a local bank. I was able to use additional funds to put towards renovations and future capital expenditures.

Lessons learned? Challenges?

100% financing and house hacking is the best! If it works for you and your family, you can find a duplex like this one to live in and rent out the other side. Depending on your deal and what the other side rents for, you may have to pay a part of your mortgage out of pocket but it's still a great deal to pay so little for your own housing which will eventually be fully leased and cash flowing!