2nd Rehab/House Hack

[John Guinta]

Investment Info:

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

Purchase price: $246,000

Cash invested: $20,000

2 flat on the South Side of Chicago.

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

This is a property I purchased about a year ago while I was searching for an investment to give me more experience in house hacking and rehabbing.

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

MLS.

How did you finance this deal?

VA benefit.

How did you add value to the deal?

I took a building that had no work done to it in the last nineteen or twenty years and fixed many issues right away. I had the intention to remodel the first floor that I was living on while the top floor remained rented out. The goal was to bring the unit up to top dollar for the area and have it look as such.
I first did a deep clean of all floors and walls, repainted all walls, cleaned and sanitized all air ducts and did a full kitchen and bathroom remodel myself while living in the unit.

What was the outcome?

After having every hiccup in the book and watching lots of youtube videos, having to kick out my top floor tenant and move upstairs near the end of the remodel...the unit had at least one showing a day and rented out a month after it was finished.

Lessons learned? Challenges?

DO NOT SKIMP ON SEEMINGLY MINUTE DISCREPANCIES. After a top of the line, full kitchen and bathroom remodel the biggest complaint from rental applicants were minor scratches on one of the bedroom floors and a missing piece of quarter round on the baseboards.
Small details that were purposely overlooked while trying to accomplish the large goals ended up halting the rental process for a month rather than the anticipated days.