House Hack and a BRRR... before they were "cool"

[Matt Maurice]

Investment Info:

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

Purchase price: $163,000
Cash invested: $5,705

House hack and a BRRRR before the phrases were ever coined! Bought it at the peak of the market, built a garage, refinanced to pull out the mortgage PMI (garage put me over 20% equity... on paper anyway). Still own it to this day, it's not a cash cow but steady debt pay-down, it will be paid in full by my tenants within the next 6 years.

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

Needed to move out of my parents house!

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

Found on MLS, and back in 2006 there wasn't much negotiating to be done by buyers.

How did you finance this deal?

FHA owner-occupied loan

How did you add value to the deal?

Built a 2.5 car garage, then refinanced with 20%+ in equity and removed PMI from the loan

What was the outcome?

Still own it to this day, it's not a cash cow but it's true and steady

Lessons learned? Challenges?

When you buy long term, even at the peak of the market, deals still work