My First investment property. House Hack!

[Shea Gajewski]

Investment Info:

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

Purchase price: $165,000
Cash invested: $20,000

I bought a duplex in Racine that needed a lot of cosmetic upgrades. Both units are spacious 2 bed - 1 bath units. The units were in rough shape before we worked on them, but after the work was complete it turned into a good first investment.

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

I needed to buy my first investment and also needed a place to live.

How did you finance this deal?

Adjustable rate mortgage, 10% down.

How did you add value to the deal?

I added value by rehabbing both of the units inside the property

What was the outcome?

I gained equity in the property, and I got higher rents which lowered my living expenses while living there.

Lessons learned? Challenges?

There were many lessons learned in the process of my first investment. I learned I could have negotiated better on the property. I learned new things to look for during inspection, and I also learned a lot about the overall process of buying a investment, and what I could do better the second time.