House Hack #1 (Greenville, NC)

[Sebastian Kressley]

Investment Info:

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

Purchase price: $123,000
Cash invested: $10,000

2/1 Duplex located near the local University & Hospital
Side A: $800 (12 month lease)
Side B: $1000 (3 month lease renewed for all of 2019)
Expenses: $800 PITI, 20% vacancy, repairs etc.

Monthly Income: $800

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

Perfect starter multi-family home for a beginner investor.

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

Craigslist. I negotiated and completed my first deal with no agent representation.

How did you finance this deal?

3.5% FHA loan.

How did you add value to the deal?

Side A: Signed long term college students.
Side B: Converted to short term fully furnished leases.

What was the outcome?

Converted a property with monthly rent of 1200 to 1800.

Lessons learned? Challenges?

Through the first four months of my ownership I went to eviction court. Although these tenants were inherited I learned the extremely important lesson of adequate tenant screening.

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

Represented myself in my first investment deal.