First House Hack Duplex Financed with FHA

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Investment Info:

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

Purchase price: $173,000

Cash invested: $27,000

This is my first house hack duplex.
# of Units: 2.
Details: Upstairs Unit is a 2 BR/1Bath unit currently rented out at $1250/mo. There's plenty of room to add a 3rd Bedroom which will increase rents by at least $300 /mo. in the future. Downstairs unit is a 1BR/1Bath unit that we will be living in. Currently going through Reno to update kitchen and bathroom. Rent projected to be around $1200 once moved out.
Purchase Details: Financed with 3.5% down FHA. Once moved out, CoCROI will be around 45-50% including rehab costs. There's also room to refinance and get all of our money out when that time comes.

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

Living for $300 per month and saving thousands of dollars per month to accelerate my real estate investing. Passive Income in the goal.

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

I was scouting Zillow non stop for weeks and set alerts. This particular property went right to Zillow and skipped the MLS initially so in theory I was first to see it within hours, get in it, and then offer. After a counter, I accepted and got moving on the closing.

How did you finance this deal?

FHA 3.5% down.

How did you add value to the deal?

Updated downstairs unit with latest appliances, cabinets, and added dishwasher. Bathroom reno as well. Total costs $11,000.

What was the outcome?

This is my first project that I decided to DIY and since I'll be living there it's that much more rewarding. I learned about the sub contracting process and overall project management of updating a kitchen and bathroom. If I can do it myself with a little time, then I'll be better off understanding the process in the future with general contractors.

Lessons learned? Challenges?

Always expect more cash needed for acquisition. Closing costs added up more than expected but having a buffer made it manageable. Also shop around for contractors, I got a couple quotes before just managing the rehab myself.

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

Luis Ortiz and Candy L. Niedoba from Berkshire Hathaway. They were aggressive and cared for what I was looking for. I went through 2 realtors before them that just didn't care like they did.