My first step to financial freedom. House hacking

[Juan Erick Rico Avalos]

Investment Info:

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

Purchase price: $235,000
Cash invested: $15,000

Currently house hacking this duplex. Using 5% down conventional. I took advantage of a program called NIFA that helped me with 10k towards the Downpayment. The 10k was borrows at a 1% interest rate for 10 years. This property now covers 70% of my mortgage including property tax and insurance. Once I move out and rent out my units this property is guaranteed to cashflow.

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

Good area as well as the potential for higher rents. Great apportioning for sweat equity.

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

MLS. I purchased this property in December of 2021. A very challenge time for buyers. In order for seller to take me seriously I had to go conventional instead of FHA. I also had to wave inspection contingencies big risk but minimized it by inspecting the property myself throughly

How did you finance this deal?

Convenient 5% down as well as Downpayment assistance from NIFA.

How did you add value to the deal?

I fixed issues my tenant had. I fixed the shower as well as added new appliances (since old ones weren’t working properly) in order to justify raising to market rents.

What was the outcome?

I am now building equity as well as saving money to buy my next house hack.

Lessons learned? Challenges?

Having system in place in order to have future deal transition smoothly.

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

Got a great team together. My agent especialices in multi-family that was huge advantage.