House hack, property #1

[Gabe Richardson]

Investment Info:

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

Purchase price: $265,000
Cash invested: $20,000

House hack long-term rental on duplex. Renovation of upstairs unit.

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

Zillow, got seller to cover closing costs, I had to negotiate for old tenant to leave (she was 11 months late on rent). Cash for keys situation

How did you finance this deal?

3% down, 3.25% interest rate, Cardinal Financial

How did you add value to the deal?

Complete renovation of upstairs, all new flooring, knocked out wall in kitchen to open it up, all new cabinets and appliances. All rooms in house repainted. Was in very bad condition cleanliness-wise when acquired, cleaned it up.

What was the outcome?

Fully rented out, 4 total tenants with me in the extra room in the upper unit (smallest of the rooms). Cash flows now and property has appreciated well to date

Lessons learned? Challenges?

Too much sweat equity, was alot to fix within 1 week before renters moved in. Financially got by by the skin of my teeth. Will ensure tenant issues are 100% resolved and in writing next deal.

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

Cardinal Financial was great for getting my loan qualified as a single family house as opposed to duplex which enabled me to only put 3% down.