First Duplex/House Hack

[Eric Luzier]

Investment Info:

Small multi-family (duplex) and house hack

Purchase price: $174,000
Cash invested: $35,000

This property is a bungalow, which includes a 2-bedroom unit on the main floor and a small, 1-bedroom unit on the second floor. My husband and I moved into the first floor and inherited a tenant on the second floor. When the tenant’s lease is up, we are going to move into the second floor, as the first floor will generate more rent. We also plan on renovating both units.

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

This is my first real investment property, other than my condo that I just sold, which could probably have been considered a live-in flip. My husband and I thought house hacking would be a great way to dive into REI and reduce our expenses.

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

We found this property on the MLS. The initial listing price was $169,000 and there were multiple offers right away, so we decided to come in over the asking with seller concessions.

How did you finance this deal?

Conventional financing with 20% down

How did you add value to the deal?

We plan on adding value by updating the kitchens and bathrooms, and installing luxury vinyl flooring throughout. The house already appraised at $209,000, so I think we are in a good place starting out!

Lessons learned? Challenges?

So far, everything has been going smoothly *knocks on wood*. I am anticipating more challenges when we begin the renovation and have to deal with finding tenants.

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

My husband, Michael Morrow, represented us. We are in South Jersey if anyone in the area needs a realtor!