My First Property - House Hack

[Andrew Duna]

Investment Info:

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

My primary residence. A duplex house hack in the desirable Fairview Park Neighborhood.

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

The BP podcast of course.

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

It was on the market in the height of low interest rates (mid 2021) and it was the only property that wasn't flying off the market with 10+ offers. It is a unique property in that- the two units are completely separated and don't share any walls. The rear unit is a renovated one bedroom and the front unit is a freestanding 2 bed 1 bath house. The front house was cosmetically outdated and unkempt. The seller was decently motivated so they agreed to list price with $6k of seller concessions.

How did you finance this deal?

FHA. 3.5% down.

How did you add value to the deal?

Exterior renovations include: Siding + painting the foundation + landscaping.
Interior: Bathroom: New flooring, New Tile Surround, Refinished Tub ... Kitchen: New flooring, new countertop, tile backsplash, added dishwasher.
Looking into -- adding central air to the front house.

What was the outcome?

Increased rental income from the front unit. Added some equity value.

Lessons learned? Challenges?

Renovations are a headache!! Especially when completing them for the first time. In the future I would rather pay more for a primary residence and not have it need any renovations- especially considering the fact that any renovations require a lot of net-cash out-of-pocket that you likely won't see returned for a while. The very small difference in down payment for a primary residence in order to secure a cosmetically renovated property is well worth.. not only the money.. but the time as well.