Point Pleasant House Hack

[Richard Phillip Lewis]

Investment Info:

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

Purchase price: $580,000
Cash invested: $150,000

House Hack Duplex using a 203k Loan to Rehab it

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

My goal is to acquire cash-flowing multifamily assets that need renovation to push equity appreciation while also Improving my DTI. This will allow me to acquire more properties in the future when it comes to qualifying for more debt.

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

MLS - I am the real estate agent - We received a $20,000 Seller Credit towards repairs.

How did you finance this deal?

203k Loan - My Cash

How did you add value to the deal?

We took down a wall in the living room that connected to the kitchen. The created one large space to make the 1000 sqft space feel larger. We gutted and renovated the bathroom and the kitchen. We removed and replaced all the insulation and sheetrock.

What was the outcome?

We have a fully updated duplex in a hot rental market that will appreciate over time.

Lessons learned? Challenges?

Think carefully when buying property in a flood zone. Get a crawlspace specialist to inspect the crawlspace. Don't rely on the Home Inspection report to catch everything.

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

I am the real estate agent. I worked with Cross Country Mortgage for the 203k loan.