First Househack Fourplex!

[Rodney Harris]

Investment Info:

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

Purchase price: $285,000

Cash invested: $10,000

Acquired a 4 unit multifamily building!
FHA loan! 3 week close!

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

It was the only way I could get into starting my real estate investing career. Now I don’t have to worry about a mortgage and I now live for free!

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

I found this deal off market through a direct mail campaign. I didn’t use a realtor. I negotiated with him over the phone then met him to sign the papers to own the property!

How did you finance this deal?

I used FHA financing my mortgage broker is a rock star, everything went incredibly smooth, we closed in 3 weeks!

How did you add value to the deal?

I have installed new porch for one of my tenants. I have increased the curb appeal of the fourplex. I am in process of upgrading my unit. I have installed a new refrigerator and a new stove. I plan on busting out the concrete in the back of 2 of units to help with foundation issues and increase curb appeal. There is a list of things but it’s all getting done!

Lessons learned? Challenges?

Look for issues with the major systems! Also look for dried spots on ceiling that could indicate leaking somewhere! Look for places where there might have been water. You want the place air and water tight! Saves money too!

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

Yes! My mortgage broker is great! He is by the most valuable person on my team right now!