My First House Hack

[Anthony Citriglia]

Investment Info:

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

Purchase price: $375,100
Cash invested: $18,000

After a week of negotiations and battling multiple offers my girlfriend and I have come on top! Our offer has been accepted for a rehabbed two Flat with live in basement in the Portage Park neighborhood in Chicago. By purchasing this property we have cut our living expenses by almost %70! Not to mention all the tax benefits that come with an income producing property!

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

House Hacking really caught my interest. I love the idea of someone else paying my mortgage. Rent in Chicago is getting really expensive. It has been my number one expense for the past ten years. By House Hacking, I have reduced my living cost by almost 70%.

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

I found this deal on the MLS. There were multiple offers on the building, so I added a "Price Escalation Clause" to our contract. It basically told the seller we would beat any competing offer by $1,500. This little move had tremendous weight. We were a few thousand dollars below the highest offer, but adding the "Price Escalation Clause" allowed us to automatically beat the other offers and come out on top.

How did you finance this deal?

5% down conventional loan.

How did you add value to the deal?

No value add as the property is a gut rehab

Lessons learned? Challenges?

Stay focused and have faith.

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

I am a real estate agent. I specialize in multi-family properties. I want to thank my team Roc Realty Group as they helped me strategize the deal.