Newbie Investor with Triplex

[DeShaun Sellers]

Investment Info:

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

Purchase price: $374,000
Cash invested: $6,251

House Hacking a triplex in Raleigh NC. Each unit is approximately 1200 sf w/ 3 bedroom and 2.5 bath. I bought and am renovating with a HELOC I have on my old primary residence.

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

I first heard about the idea of house hacking last year and I was hooked! The idea of living for free intrigued me.

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

I found this deal through direct mail marketing. I talked with the owners for about 2 months before they decided to sell. I set a low anchor price and worked from there. I was extremely happy when the appraisal came back at $468k!!!

How did you finance this deal?

I used a VA home loan.

How did you add value to the deal?

I handled all of the paperwork for the sellers and did not take a commission. They were an elderly couple that wanted to get out of the landlord game and move to the beach. I believe the deal was completed easily because I am a real estate broker. I already had a preferred attorney and I had lenders ready to go!

What was the outcome?

We closed the deal on time with no snags. Now I live in one of the units. I inherited two tenants that were paying below market rent. They were paying $835. The market in northwest Raleigh for 3br 2.5ba w/ 1200 sf is $1300. The tenants recently moved out. I am doing renovations to the both units now to get them rent ready by December.

Lessons learned? Challenges?

To be continued.......

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

I am a real estate broker in Raleigh NC.