First Investment - Live in Duplex in Santa Cruz, CA

[Veronica Haniger]

Investment Info:

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

Purchase price: $799,900
Cash invested: $130,000

We currently live in one of the units and rent out the other. We rehabbed the apartment ourselves and listed it for premium rent. For us, this was the best move as rent in the CA Bay Area is astronomical. While we're not cash flowing like crazy, our living expenses are lower than they would be if we were renting a smaller space and are benefiting from Bay Area appreciation.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

SWEAT (lots of it..and tears.) equity

What was the outcome?

We purchased our first home in one of the craziest places to buy a home and are paying less to live in it than we would to rent a smaller and older space.

Lessons learned? Challenges?

DIY is not for the faint of heart. We spent a good 6 months on this project and did all of it ourselves in the few hours after work each day. LOTS of Youtube. Next time, I'll find a contractor to do most of the heavy lifting.

One good thing I learned was that this type of thing is possible for us. That if the numbers make sense then just get into it and do the work to get it done. Don't stop in the fog of the unknown, just keep stepping towards it and eventually you'll make it out.