My First Buy and Hold, House Hacking

[Jared Mann]

Investment Info:

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

Purchase price: $267,500

First Purchase, Duplex that I am owner-occupying, bought with FHA loan, tenant pays 1325.00 a month, my unit was previously rented for 1025, but I believe the market is closer to 1100.

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

I was targeting duplexes in order to owner-occupy. Since I will be personally living here, I sacrificed getting a better deal in favor of getting into an updated place in a better neighborhood.

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

Worked with a realtor and this unit was listed on MLS. Offered below list, but there were multiple offers so I had to raise my offer. Worked to get non-monetary value by negotiating sit-downs with the seller, who is an established investor in the area.

How did you finance this deal?

FHA loan, 10% down

How did you add value to the deal?

Will be personally managing the property, and will be getting familair with the area as I think I am interested in repeating the process in 12 months once I have met the requirements of the FHA.

What was the outcome?

Got my first deal done, and just received my first rent check.

Lessons learned? Challenges?

In the future, I will over-estimate closing costs as I nearly did not have enough for the down payment.

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

My realtor Shahada Fennoy was a great resource.