1st Successful House Hack

[Thomas Harr]

Investment Info:

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

Purchase price: $185,000
Cash invested: $35,000

House hack - FHA loan. 3br/2ba a side. Added an extra bedroom onto my side and have 3 roommates. My side rents for 1350, other side is $800 (inherited tenant). Put 30k into the home - roof, fence, siding, 23 windows, flooring, kitchen remodel.

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

BP podcast. I've listened to every single one. They have helped me tremendously and gain 6-8 doors the past year and a half.

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

MLS! My mom is a realtor and found it that night. Gave them asking price, knowing i was going to do a small down (FHA or 5% conventional)

How did you finance this deal?

Originally, it was a 5% homepossible conventional. That ended up going haywire and somehow got an FHA approved (house shouldnt have gone FHA)

How did you add value to the deal?

$30k renovation. New roof, double privacy fence, 23 windows, siding, flooring and kitchen remodel on my side. All new HVAC systems. Ripped off old box gutters and rebuilt fascia/soffit system with new gutters.

What was the outcome?

Currently living in one unit. Brought in 2 roommates, about to make another room for myself and get another roommate. Right now CF/Month is about $200 total (not great) but it will be $600/month soon and once I refinance out of FHA and PMI, it will be about $750!

Lessons learned? Challenges?

Be patient and gather a strong group of contractors. I did probably $50-60k of work for about half that due to networking.