House Hacking a Duplex

[Reagan Clo]

Investment Info:

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

Purchase price: $390,000
Cash invested: $70,000

This is a duplex that I am house hacking as a buy and hold investment. One side is rented long term while I live in the other. I used a conventional loan and put down 5%. The roof needed to be repaired, which added another $10,000 to the cost, but doing that allowed the insurance to be cheaper and ensures that the rood is good for another decade.

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

I am interested in multi family, long term, buy and hold strategies.

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

I used a real estate agent to find it on the MLS for me and she helped me to purchase it. I did not want to lose the deal to someone else so I asked for it at the asking price. I was able to get the rood payment cut in half, so I did not have to pay the whole price for it.

How did you finance this deal?

I used a conventional loan and had the cash available to put down 5% and for the closing costs. The cash came from my own personal savings and my father who invested in this deal with me.

How did you add value to the deal?

I replaced the rood for $10,500. It needed to be repaired desperately since it was so old.

What was the outcome?

I now have a great place to live close to work, and another property to add to my portfolio.

Lessons learned? Challenges?

The duplex was expensive and with rates as high as they are, I was not able to save money house hacking. I did not want to risk losing the deal so I bought it at the asking price, as opposed to negotiating down.

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

I worked with a fantastic real estate agent named Kelly Trageser, who I recommend if you are in the Brevard County area of Florida, and a loan officer, Spencer Howerton, of Satori Mortgage.