First Multi-Family House Hack

[Desmond Fielding]

Investment Info:

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

Purchase price: $305,000
Cash invested: $90,000

My first multi-family property. I purchased with an all cash offer and then did a 70% LTV cash out refinance. My wife and I will be house hacking and living in one unit while we rent the other. Our plan is to remodel the side we're living in and add another room in the basement so it will be 4bd 2ba. Then we will move into the other side and do the same thing. Once we've remodeled both units we'll move out and get it fully rented.

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

I always wanted to do a multi-family house hack, but my first property was a SFH. I built up capital until this deal came up and the numbers made sense.

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

I found on Zillow then made an all cash offer.

How did you finance this deal?

All cash offer then 70% LTV cash out refinance

How did you add value to the deal?

I will be remodeling and rent proofing both units and adding an additional bedroom in the basement.

What was the outcome?

It's still in process I just closed on the property. I hope to have everything completed in 1-2 years.

Lessons learned? Challenges?

You have to be quit when you see the right property. In my area true duplexes hardly come up for sale. Most MFH are converted from SFH to MFH and the quality sometimes is not good. This property came up on Zillow and I walked through it the next day and made my offer during the walk through. Another offer came in the same day, but I made an all cash offer which helped me be more competitive.