Updated almost 3 years ago on . Most recent reply
4-Units for Househack #2
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $256,000
Cash invested: $17,264
2nd househack property. 4 unit apartment building in a good neighborhood of Pittsburgh with side by side up-down units. 2 inherited tenant and 2 vacant units that were immediately rehabbed. Will be fully repositioned by Spring '23.
What made you interested in investing in this type of deal?
Was due for my second house hack after 17 months being in my first. Liked the fact that it was a 4plex in a neighborhood I was familiar with.
How did you find this deal and how did you negotiate it?
Found by a referral from my network before it was listed. Found out what the seller was looking for price wise and offered 6% over with a 6% assist to cover closing costs, so it net even for the seller.
How did you finance this deal?
10% down portfolio loan
How did you add value to the deal?
Rehabbed vacant units and moved a new tenant in at market rents.
What was the outcome?
Currently living for free cash flowing. Will be a heavy cashflow deal once the inherited tenants' units are rehabbed and brought to market rent.
Lessons learned? Challenges?
Inherited tenants can be a pain and should be prepared for accordingly. Timeline with those units can be difficult.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Anthony Feola at Northwest Bank in Pittsburgh helped finance the deal for me.
Jeremy Taggart, a fellow agent at Deacon Hoover Real Estate Advisors, assisted in sourcing the deal.