3rd House Hack Duplex

[Nathan Dehn]

Investment Info:

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

Purchase price: $240,000
Cash invested: $5,000

My wife and I bought our 3rd duplex via house hacking. Able to put the minimum 3.5% down, received credits from the seller, and extended 1 tenant's lease for 5 years!
This one was crazy because we got under contract without any pictures and knew the upstairs tenant needed to be evicted. The pictures show how disgusting it was! But, allowed us to get a great deal and get more space for our growing family.
Mortgage payment of $1600/mo. Lower floor rent is $1000 with market rent of $1200, and upper floor will rent for $1,050/mo when we leave.

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

No photos, on market a long time, gave us negotiation power. In a fantastic neighborhood with a partially finished basement.

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

Found on MLS. Asked for seller credits to keep minimum cash out of our pockets.

How did you finance this deal?

FHA

How did you add value to the deal?

Had seller remove non paying tenant. Cosmetic updates of paint, new appliances,/vanity. Clean the crap out of the place.

What was the outcome?

Good long term investment. Lower level tenant signed a 5 year lease who's already been in the property for 8 years.

Lessons learned? Challenges?

Buying a home while your wife is 8 months pregnant is a challenge and time consuming!

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

Yes, I represented my self since I'm an agent. And I'd also recommend me to others. :)