96 Greenwood St. - 1st Investment Property Story

[Hannah Hodge]

Investment Info:

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

Purchase price: $275,000

About three years ago, at the age of 25, I took the plunge into real estate ownership, purchasing a two-family property. I was a novice, navigating uncharted territory with a mix of excitement and apprehension. To make the acquisition feasible, I utilized an FHA loan, capitalizing on the historically low 2.875% interest rates and the attractive 3% down payment option. Little did I know, this purchase would be the catalyst for my entry into the realm of real estate investing.

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

The concept of 'house hacking' was incredibly appealing. The idea of living in one unit and having rental income cover a significant portion of my mortgage was a game-changer. It transformed homeownership from an expense to a self-sustaining investment, allowing me to build equity while minimizing housing costs.

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

This deal came about because the property lingered on the market, especially during winter. Recognizing it needed attention, I negotiated $5,000 in seller concessions, a new roof, and a new furnace for one unit. These improvements significantly enhanced the property's value.

How did you finance this deal?

Being a first-time homebuyer, I was able to take advantage of a 3% down FHA loan.

What was the outcome?

The outcome was a fantastic first investment deal, thanks to successful negotiation.

Lessons learned? Challenges?

I definitely learned not to skip over properties that have been sitting on the market. In my case, it resulted in a fantastic investment, which I wouldn't have found otherwise.