2-Family Buy and Hold

[Coty B Lunn]

Investment Info:

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

Purchase price: $94,000
Cash invested: $5,000

House hacking at its finest! This was my second investment property - a 3 family residence! This one features a single family home - in which I live and two apartments above an oversized, long 2 car garage. The two apartments are one-bedrooms each, but cover the mortgage, taxes and insurance. On top of that, they pay for my utilities each month in full with a small cash flow at the end!

EDIT: Moved into another home I house hacked and rented this one out. It took me from producing $515/month in cash flow to $2,065. Also, raised rents slightly on the others and now profiting another $50/month. Total, profiting $2,115/month now! This is after paying the mortgage, taxes and insurance. That is $25,380. If you take the water bills out of it, that is $24,766/year or $2,063/month. Very little maintenance is needed on the property and I manage it myself.

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

I originally wanted to move into it to have a single family home to myself while being able to cover the mortgage, taxes and insurance with the two units in the garage.

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

I bought this before I became a Real Estate Agent. It was presented to me by my Real Estate Agent and the person who ended up mentoring me!

How did you finance this deal?

FHA loan. 3.5% down with seller concessions added on top to pay closing costs. If I could go back in time, I would go with Community Bank as they do a 3% down, no closing costs deal for investors who move into the property. Also, they offer a 10% down with no PMI if you do not move into the property.

How did you add value to the deal?

I fixed up a few odds and ends and replaced some floors in unit 2 and 3 to make it have more of an appeal. I also changed the light fixtures in the apartments and painted everything.

What was the outcome?

Worked perfectly for me to live in until I decided to house hack another property!