Getting *PAID* to live in Indianapolis! House-hacking a duplex!

[Brandon Boyd]

Investment Info:

Multi-family residence buy & hold investment in Indianapolis.

Purchase price: $128,500
Cash invested: $22,000

This was a long-distance real estate deal, as my wife and I were renting in Orlando, FL when we had our offer accepted on this duplex in Indianapolis, IN. We had a realtor do a video walk-through, and submitted an offer. We are currently renting one half for $1125/mo to some young college grads, and living on the other side! Living rent-free is life changing!

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

My wife and I were moving back to Indiana, and needed a place to live. After listening to the BP podcast, we decided to buy a duplex so that we could live in one side and rent out the other. We went from paying $1050/mo renting 1 bed | 1 bath apartment (infested with cockroaches!), to living in a 3 bed | 1 bath that is making us $300 a month!

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

After looking at over 100+ houses online, this one popped up for $125k and we put in an offer sight unseen. It definitely needed some work, but we knew it had great potential. So, we put in an offer with an escalating clause. We closed the deal at $128,500.

How did you finance this deal?

Through Centier Bank with Chris France. Conventional 5% down loan. Our interest rate was 4.75%.

How did you add value to the deal?

At closing it instantly re-appraised to $136k. The seller needed money quick! We did light rehab work in both kitchens. The biggest unexpected cost was having to replace both water heaters and AC units, which brought our all-in total from $14k to $22k. Currently, our duplex is currently worth $170k and rising, as our neighborhood is quickly flipping.