My first house-hack

[Jason Allen]

Investment Info:

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

Purchase price: $446,000
Cash invested: $15,000

My first house-hack. I put 0% down using a VA loan. We negotiated a 2% seller credit which provided most of the funds necessary for the rehab of my side. The other side had been redone the year before I bought it. I have over 50k in equity in this property, expect to cash flow $300 a month when fill it and move into my next multi-family unit. This is in an A+ area.

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

It had cash flow potential off the bat even with putting 0% down on my VA loan.

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

I saw it poorly marketed on Zillow and the price dropped 50k within 2 months. That made me realize that the sellers were very motivated.

How did you finance this deal?

I put 0% using my VA loan and actually received around $12k at closing, which I used to rehab the side that I moved into to.

How did you add value to the deal?

We negotiated a 2% seller credit, which I used to rehab the side I moved into. My side needed paint and an updated kitchen.

What was the outcome?

After receiving rent, I pay $1,000 a month on the mortgage. Given my updates, I expect to cash-flow $300 a month when I move out or at least break even if I want to fill it quickly.

Lessons learned? Challenges?

Finding good contractors is a job in itself. Once you find the right team, treat them well so they prioritize your work for present and future projects.