FHA house hack turned MTR

[Merritt Harris]

Investment Info:

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

Purchase price: $85,000
Cash invested: $20,000

Turn of the century upper and lower duplex, both large 1300 sq ft 3 bedroom apartments. House hacked for a year, with NO downpayment or closing costs due to FHA loan + local closing cost grant. Both units have been converted to MTR for local hospitals and university visitors, which gross around $2200 a month each.

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

Living for free by house hacking.

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

On market deal, knew a neighbor. Only negotiations involved FHA inspections which were added as concessions.

How did you finance this deal?

FHA, recently did a cash out refi!!

How did you add value to the deal?

Renovated both upper and lower units, furnished them to target mid term rental clients.

What was the outcome?

Way more cash flow!!

Lessons learned? Challenges?

Old houses have deep seeded problems, if you have a small project be prepared for it to turn into a large project!