My First Multifamily/ House Hack

[David Meiners]

Investment Info:

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

This is my first property and my first house hack. I'm currently rehabbing the bottom unit myself while I live in the top unit. Looking forward to finishing up the rehab here in the next month. I plan on furnishing the bottom unit and renting it out to medium-term tenants but will cover my mortgage if used as a long-term rental.

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

I have been researching real estate for the last 3 years. I finally got out of analysis paralysis once I graduated college. I see this as a means of getting out of my 9-5 position and finding financial freedom for my family and I.

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

I found this deal through the MLS. I offered lower than asking in a market that was asking higher. I showed up early to the showing in hopes of getting to talk to the owner which I did. I introduced myself and got to know her. She was really nice and was moving to Cleveland Ohio. I was one of the only bidders that was actually going to live in the home, the rest were out-of-state investors. I Bid 10-20k less than the other bidders. It was because she got to know me and my situation.

How did you finance this deal?

On paper, I was going to do 20% conventional, and once my offer was accepted, I reduced the down payment to 5% conventional.

How did you add value to the deal?

I'm currently rehabbing the property which will increase the property's value.

What was the outcome?

I plan on a cash-out refinance depending on if the numbers make sense to go into another property once my 12 months end to get another primary residence. Rent out both units.

Lessons learned? Challenges?

Being my first deal, I didn't anticipate all the expenses and time it takes to rehab. I work my 9-5, and in the Marine Corps Reserves, so I've been working slightly each day and when I have free weekends.

For the rehab I have leveled the floors, remodeled the bathroom, remodeled the kitchen, redid all the flooring, and painted every surface. The previous owner smoked for 15 years in the property so I kilzed everything to remove the stains and smell. I have redone all the cosmetics.

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

My realtor Shawn Thomas with Keller Williams was amazing. He had dealt with investors before and put me in connection with a couple in the northern Kentucky area that have around 30 investment properties.