My First House Hack

[Justin Hansen]

Investment Info:

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

Purchase price: $165,000
Cash invested: $18,250

I currently house hack this investment property. My tenant pays $850 a month while my roommate pays $500 a month plus he splits the utilities. I put down 5% and did some remodeling costing me approximately $10,000. My current PITI is $1,138.00.

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

Perfect way to get started in the Real Estate investment space.

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

This deal was found on the MLS. When I originally found the deal, it was contingent within the first day. Several weeks later the house came back on the market, and I noticed almost immediately. I went on a showing the same day and put an offer in at asking price and got it accepted. The deal originally fell through due to an inspection contingency which was remedied by the previous owner.

How did you finance this deal?

I financed the purchase by conventional loan.

How did you add value to the deal?

So far, I've added value by adding new flooring throughout the whole house and fresh paint. Next, I will be updating the kitchen. Once, the current tenant moves out I will update that unit's bathroom. Once, I move out into the next house hack I will update my current bathroom.

What was the outcome?

I don't have a mortgage expense out of my own pocket. My tenant and roommate cover the entire cost of the PITI.