4-Plex House Hack Partnership Using FHA Loan

[Jeremy Bourgeois]

Investment Info:

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

Purchase price: $252,000
Cash invested: $60,000
Sale price: $430,000

House hacked a fourplex with my partner Bruno. We renovated all units and were able to cash flow about $1,000/month each after all expenses. We sold the property a few years later off market for a 6 figure return.

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

It seemed like the most logical way to get into real estate, and my partner was more experienced in business than I was at the time so it was a no-brainer.

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

We paid full asking price. It was a pocket listing from a local real estate agent

How did you finance this deal?

FHA loan

How did you add value to the deal?

We renovated all units and almost doubled our monthly rental income from when we purchased it

What was the outcome?

A great cash flowing property that we sold for an incredible short term return.

Lessons learned? Challenges?

Learned a ton about remodeling older houses, which came with many challenges. Was a great way to get started and I learned hands-on. Dealing with some of our tenants was definitely a challenge.

[Johnny McKeon]

how did that work doing a partnership using FHA? did they want both people on the loans to live on site?