First Property! HouseHack New Jersey 3 unit (Triplex)

[Ian Stromski]

Investment Info:

Small multi-family (2-4 units) wholesale investment.

Purchased my first wholesale deal! Got a three unit in livable condition, but needs modernizing and a few repairs. Purchased for 355k, and budgeted 20k/unit Reno and some extra for other Capex.

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

House Hack, getting started on first property.

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

Found through agent after 8 months of searching while doing Air Force pilot training duties "on the side" xD. No contingencies. Got 5k off after the walkthrough because the deck was unsafe and needed to be redone AS SOON AS POSSIBLE.

How did you finance this deal?

Did a "hard money loan" with family using gift tax exemption and trust as collateral (despite what Dave Ramsey says, my father and I have an incredibly strong investing and personal relationship). I am getting this loan at 5% int and paying down principal and interest on each payment. If I Refi, I will pay him back against my lifetime exception, or if not I'll pay him and his wife $x each year, in accordance with IRS gift tax limits. Perhaps unusual, but legal with the IRS. Thoughts on this?

How did you add value to the deal?

Planning on renovating and renting at market rates.