First Investment Property - Duplex Househack - 06/2021

[John Doss]

Investment Info:

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

Purchase price: $310,000
Cash invested: $90,000

The house is situated in Sunset Hills which is an affluent neighborhood in the heart of Greensboro. The house sits approximately 2 blocks from the local university and a few minutes from downtown. The location is prime and the property has already appreciated around 30-35% since purchased. This can be contributed to sweat equity and market conditions in the Triad area.

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

This was the perfect deal to get started in real estate investing - a house-hack in a duplex, in an affluent neighborhood which left room to add sweat equity, appreciation, and plenty of cashflow by renting out the rooms.

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

The deal was brought to me by Jason Coleman, a local investor-agent and contributor to the BP forums.

How did you finance this deal?

It was financed with an owner-occupied conventional loan with a 5% down payment.

How did you add value to the deal?

We did a total remodel on the house. New floors, new insulation, updated the kitchen, new bathroom vanities, new light fixtures, new HVAC and paint throughout.

What was the outcome?

It is a duplex with a unit upstairs and a unit downstairs. Each unit is 3/1 with a kitchen. I currently live in one of the bedrooms and rent out the other 5 in the house. The rent per room is $615 ($750 if there's a couple). Everyone living there is a mix of young professionals, students, or young adults just getting started in life away from home.

Lessons learned? Challenges?

This house hack was my first introduction into real estate investing. After starting the remodel I ran into multiple issues - active termites, mold that had spread through half the bottom floor, bad HVAC, electrical wiring issues. It was stressful at times but in the end, I learned a lot about remodeling and working with contractors.

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

Jason Coleman - agent
RJ Meyerhoffer - lender