First property, and househack!

[Eric Schmid]

Investment Info:

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

Purchase price: $189,000
Cash invested: $3,600

Contributors:
Joseph Ziolkowski

Our first property, and househack! A short week later, we closed on another duplex in the St. Paul Area. We are currently toward the back end of our rehab on this one, but would certainly enjoy posting pictures for all of those who are interested!

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

Having recently graduated college, househacking made the most sense for us. It's a great way to get started, become familiar, and to do so for low-money down.

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

We found this one on the MLS, and paid asking price. Not that we chased the deal, but the numbers made sense at asking, so we jumped in!

How did you finance this deal?

We utilized a down payment assistance program in the area to finance this deal, and with that capital, used a 3.5% down FHA. The capital from the assistance program covered nearly the entire 3.5% down, and closing costs.

How did you add value to the deal?

We will be rehabbing both the lower and upper units of the property, most of which are cosmetic.

What was the outcome?

Although we are still in the process of the rehab, we are looking forward to its completion and renting out the lower unit!

Lessons learned? Challenges?

The biggest lessons learned are to take an extra close look at the quality of the work that was completed with the previous/current owner. That may be a clue in finding yourself in a laundry list of items that need to be taken care of.

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

Jordan Moorhead is our agent - he does an incredible job! We used LoanDepot for our financing - ask to speak with Anthony.