FHA House Hack Fourplex

[Nick Vought]

Investment Info:

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

Purchase price: $450,000

Cash invested: $20,000

Bought this fourplex with an FHA loan working on rehabbing the rest of the property to refinance and purchase another multi family or syndicate a deal.

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

Ready Rich Dad Poor Dad like most on here. Was drawn to the idea of financial freedom, and once I started researching properties and learning more I realized how much I loved doing it.

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

Found on MLS at time was under contract. Saw it had been under contract longer then normal and had my agent reach out to them. Turned out the buyer had backed out and if I put in an offer they wouldn't put it back on the market. Original asking price was 500k but only appraised for 450k. Since I was using and FHA the bank would only let me loan as much as it appraised. Lucky he was doing a 1031 exchange and had to sell very soon. We were able to negotiate the 450 deal and make it happen.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

I was able to close on the property in 7 days

What was the outcome?

raised rents and now get $4,200 a month in rental income. I have a cash flow that pays for where I live now, and a great investment that only keeps going up in value.

Lessons learned? Challenges?

Property managing is more difficult then expected. Rehabbing yourself using only youtube and your dads tools was probably the most challenging thing.

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

I did this deal solo, no mentor, I found the deal not my agent. Just because you are starting out doesn't mean you NEED to have help to do it. You can make it happen yourself with some good ol elbow grease.