House Hack success story (before knowing what the heck that was).

[Chris DuPaul]

Investment Info:

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

Purchase price: $220,000

Cash invested: $12,000

This property has provided great returns over the years using the house hack strategy. Admittedly we didn't know of the house hack at the time of this deal. We initially offered on the property when it hit the market but the seller refused and the agent stated they were getting to much activity to sell for the 10k below ask price we were offering. Several months later we saw that the home was still on the market so we went back to the agent and stated our original offer still stands if the seller wanted to reconsider. She did and we ended up getting it for our ask (10k under ask with 6k in seller paid closing costs). It appraised at the list price which came as no surprise and we have a decent handle on pricing in the area. Including down payment and reno costs, we were into it for ~12k at the time of purchase. It was occupied by a tenant who was using it as a single fam, and to be kindm they had a lot of "items" with the possible exception of a dustpan and broom... That must have scared other folks away but I could tell the building had good bones and we'd be able to make it shine. The units didn't need a ton of work and we ended up replacing some fixtures, painting the walls, and refinishing the hardwood floors. We were able to get all that done and have the unit rented before our first mortgage payment was due. Hey this landlord stuff is easy! JK. We've been blessed with good tenants, though we do have a pretty stringent screening process. All in all this property has an incredible rate of return based on our acquisition costs and should continue to provide a solid stream of income for the future.

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

Just looking for a new place to live and lower the monthly burn rate.

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

MLS listing

How did you finance this deal?

FHA

How did you add value to the deal?

Minor renovation costs.

What was the outcome?

Great long-term rental.

Lessons learned? Challenges?

Don't give up on a deal even after getting a 'no' from the seller the first time around.

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

Self-represented.