My House hack project in metro ATL

[Zachary Aldridge]

Investment Info:

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

Purchase price: $302,500
Cash invested: $18,500

Contributors:
Ashish Acharya

Bought this triplex with an FHA loan did a very extensive rehab and house hacked it!

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

Great triplex opportunity in metro ATL for my next house hack

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

Found this deal on the MLS. Listed at $315k, offered $300k settled at $302,500.

How did you finance this deal?

Tried using my VA loan to purchase but the VA appraisal came in incredibly low due to having to classify the property as a duplex because the bottom two units were combined and you couldn't access the top unit unless you went outside and up the stairs. No duplex or triplex comps within 10 miles of the property. Deal seemed to be dead but I wasn't giving up. Tried to use an FHA in my name but couldn't since I owned a property within 100 miles. Ended up partnering with my father and used his FHA.

How did you add value to the deal?

10 month compete cosmetic rehab, added a kitchen, added window in cinderblock, siding work, chimney removal, roof patch, roof paint, all 4300sqft needed work and we (my family, friends and I did all of it)

What was the outcome?

Added a stairwell to connect all 3 units together, refinanced it as a "single family" and new appraisal came in at $425k. Original VA appraisal came in at $230k. Refinanced in mine and my wife's name, taking my father out of the deal. As soon as the appraiser left we walled off the 3 units and rented it out as a triplex!

Lessons learned? Challenges?

There’s always a way! Don’t give up. Also I learned I’m not a contractor nor do I want to be 😂 but you’ve got to do what you have to do, especially in the beginning.