My First Property- Househacking in Metro Detroit at Age 23

[Jason Mazza]

This spring I purchased my first Duplex in Metro Detroit (Center Line) for 93k. After listening to the BP Podcasts for just over a year I finally jumped in at age 23 and bought a duplex with a 5% down owner occupied loan. I did about 12k worth of rehab including a new kitchen, bath and refinished hardwood floors. After completing the rehab, I moved into the upper 1 bedroom unit and posted the lower unit on Zillow, hotpads, etc. I was surprised to get many hits on my posts within the first day at $925 a month (almost 1% rule with only 1 of the units rented)! With my PITI totaling $720 and managing the property myself, I am comfortably getting paid to live! Within a few months, I plan to move out and rent the upper unit and get another small multi with an OO loan once I hit the 12-month mark.

Once both units are rented and I pass it off to property management, here are what the stats will look like assuming 7% Capex, 7% vacancy, 10% PM, 5% repairs:

COC: 18%

Monthly Cash Flow: $300

ARV: $125000

Special thanks to BP User Bill Goodland for your coaching during the entire process. Also, to the BP team for the Michigan State-Specific LL forms.