Personal House Hack 2 Homes

[Sean Russell]

Investment Info:

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

Purchase price: $240,000
Cash invested: $20,000

Residential Lot with two single family homes on the property. One is a 4 bed 2 bathroom and the other is a 2 bed one bath house. We went in and did all new floor, paint, and minor repairs to the property and then moved into the main house. The back house we were renting out through vacation rental sites and then switched to short term tenants. We still own both properties and are covering the mortgage with the rental income from the small back house.

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

I wanted to have some income to help pay down the mortgage and my wife did not want an up/down or side-by-side.

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

I put a low offer in as it was on the market for a long time and needed some maintenance. Accepted first offer and no negotiation.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

We put in new flooring, paint, trim, updated kitchens, and added a few walls, but kept the old charm as they were early 1900's homes.

What was the outcome?

We still own both properties and rent out the back house to help pay down the mortgage and going to get a HELOC to invest in the next property.