First Investment - House Hack

[Robert Bodmer]

Investment Info:

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

Purchase price: $140,000
Cash invested: $160,000

Hey guys, this is my first investment property which I am using as a house hack in Baltimore City! I found this property through an agent and quickly decided it was right for the wife and me. We are finished rehab and right now waiting on the Refi to go through. It's two units we live in one and renters were placed as of January 1st paying 950 a month. Although it wont fully cover my mortgage, it covers about 90% allowing us to almost live for free. I except it will appriase for about 200k leaving us with about 40k in equity.

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

This deal fit all of our criteria and is very close to where I work and go to school.

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

I found it with an agent. I negotiated it from 165 to 140K with no closing costs.

How did you finance this deal?

Private Money

How did you add value to the deal?

Many upgrades mostly paint and carpet with a few big ones such as: new siding on the tenant house, new kitchen, new bath.

What was the outcome?

I almost have my mortgage covered by my tenant.

Lessons learned? Challenges?

Rehabs take a lot longer when you are doing the work yourself.