First rental property/HouseHack!

[Chris Irvin]

Investment Info:

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

Purchase price: $224,500
Cash invested: $24,453

SFH rent by the room HouseHack. Added a 3rd bathroom in the lower level. Also made a make shift bedroom for myself in the LL family room. This allowed me to rent out all 4 bedrooms.

Current cash flow $759/mo
Cash on cash return 37.29%

https://www.biggerpockets.com/analysis/rentals/9fa45264-39ca-493b-9ef0-eddb6680c575.pdf

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

A great way to start investing by living rent free and learning on a simple deal.

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

MLS/agent. Offered over asking price, and took out finance and appraisal contingencies.

How did you finance this deal?

Traditional mortgage 5% down. I was able to get a better interest rate by doing 5% down rather than a FHA loan.

How did you add value to the deal?

DIY rehab: Added a 3rd bathroom in the lower level. Also made a make shift bedroom for myself in the LL family room, this allowed me to rent out all 4 bedrooms.

What was the outcome?

Not only am I living rent free, but I am also earning $759/mo in cash flow!

Lessons learned? Challenges?

The rehab was more time intensive than I had imagined. Also, several little unexpected items during the rehab.