Duplex House Hack

[Brandon Jones]

Investment Info:

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

Purchase price: $259,000
Cash invested: $64,750

House Hacking a Duplex. Bought with tenants under leases for under market rent. As the leases ended we moved into each side and did $6K in cosmetic upgrades and increased rents from:
- 2/2 $850 to $1,300
- 3/2 $1,000 to $1,500

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

We wanted to buy our first rental property. Great neighborhood & ability to cash flow.

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

Found it on the MLS before anyone else and quickly got an offer in.

How did you finance this deal?

Conventional - 25% down.

How did you add value to the deal?

$6K in cosmetic renovations & sweat equity.

What was the outcome?

Increased rents to market rates & have great resident & lease in place.

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

I worked with Brian Maddex at Guild Mortgage who comes to our local REIA meetings and was great for potential ways to structure the deal.

[Brandon Jones]

That does sound a lot like our deal! Couldn't agree more, house hacking has been a great entry into real estate. We'll likely try for another house hack or do a live n flip. Our goal is to fully replace my W2 income by 40 with a mixture of multi-family units & single family units. Just to diversify we'd ideally like a few SFR's & LTR's.