First property, and first house hack!

[Reese Chappuis]

Investment Info:

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

Purchase price: $252,500
Cash invested: $50,500

Small SFH-turned-duplex on a quieter street in a downtown area. Built in 1900, it has some character (tin roof, cast iron kitchen sink), but definitely needs some updating cosmetically and eventual repairs.

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

I'd spent the last 6 months looking to get into my first deal, and house hacking seemed the way to go.

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

Found it on the MLS. We were originally attracted to it because it'd been on market for over 2 weeks and this was on the tail end of houses being bought up within a week, so we thought we might have some time to actually formulate a strategy. Of course, 3 or 4 other people were viewing it the same day we did, so ended up submitting an offer that night at asking price (250k) with an escalation clause.

How did you finance this deal?

Regular ol' conventional mortgage, 30yr fixed rate.

How did you add value to the deal?

Still working on this! Doing some lipstick updates (bathroom is just about done, kitchen will probably be next year. Also trying to figure out a way to add a washer and dryer. I'd love to do some larger updates (replacing asbestos siding and adding a heat pump would be AMAZING) but that's likely too over the top for the area that the house is in, and it would take way too long to make that money back even after we move out.

What was the outcome?

Planning on living here for roughly 2 years, unless market conditions drastically change. Planning on holding on to the place and renting out both units, unless our improvements and general appreciation are able to make it appraise for enough to make it worth the sell.

Lessons learned? Challenges?

Patience? I'm still learning that one I think. I knew it wouldn't be a homerun and I'd make mistakes, but that I'd just chalk that up to learning experience. Wish I knew more of what I could do while negotiating, but the market also made me feel a bit rushed.

Definitely gonna take the next one a LOT slower, and be even less afraid to walk away.

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

Joia Brown was a fantastic agent to work with, always (AND STILL!) helpful and communicative.