Duplex house hack in Springfield OR

[Josiah Kellerman]

Investment Info:

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

Purchase price: $391,000
Cash invested: $20,000

My wife and I bought a duplex with an FHA Loan for us to move into for a year. One side is updated and rents for $1,300. The other is occupied as well and we have given them notice to vacate. We plan to house hack for the first year and then move out. We will then rent one side to a traveling nurse or other traveling professional at a higher rate.

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

The ability to eventually rent out one or both sides to traveling professionals for much higher than market rents and get some really good cash flow.

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

Found it on the MLS and there was one other buyer that was interested. I found out what they offered and we offered 1K more than them. Within escrow, we negotiated for the seller to pay for all our closing costs as well as a few electrical and plumbing repairs. I am a real estate agent and so we gained ownership of this property with about $5,000 because of my commission.

How did you finance this deal?

FHA loan from Summit Funding Inc with the David Kammerer Team. %3.5 down.

How did you add value to the deal?

We are putting in all new flooring and new interior paint to one side as well as adding ductless heating and ac to both sides. Also, the property has no fence and so we are adding a fence as well.

What was the outcome?

Still very early on!

Lessons learned? Challenges?

I'm sure there will be plenty but still too early.

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

Our Lender Dave Kammerer with Summit Funding Inc in Eugene Oregon