House Hack in Cloquet MN

[Brittany Kuschel]

Investment Info:

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

We purchased a primary residence with a guest house that we are currently renting long-term.

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

The idea of a house hack where you still have the option for your ideal primary residence, but the assistance of a tenant to pay the mortgage is EVERYTHING!

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

We found this deal on Facebook Marketplace. We were the first and only people to tour this property, and we made an offer on the spot when we went to tour the property.

How did you finance this deal?

We used conventional financing. We had equity from the sale of our primary residence that we had slowly (VERY SLOWLY) flipped, and rolled that equity into our purchase.

How did you add value to the deal?

We seal coated the driveway, and improved the landscaping around both the home and guest house.

What was the outcome?

We have had no issues, have a wonderful tenant, and would do it all over again!

Lessons learned? Challenges?

We ran into a bit of a hiccup with financing due to there being a public road that cut through the property. Lesson learned is that Freddie Mac and Fannie Mae don't like buyers to finance land that is separated from the main parcel.

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

I am a licensed Realtor and I handled the paperwork for the entire transaction. We highly recommend Mark Anunti with Bell Bank to all of our friends, family and clients. He helped us purchase our dream home, and helped us navigate the tricky stuff involving the adjacent acreage.