First Duplex - House Hack

[Tyler Frazier]

Investment Info:

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

Purchase price: $155,000
Cash invested: $2,500

Purchased as primary residence to House Hack when newly married. Didn't know what House Hacking was, but knew we didn't need more than a nice two bedroom apartment and didn't want to pay a mortgage. Moved after four years of living for free to buy a single-family house when a few months shy of having our first child.
Property has appreciated considerably due to fortuitous swing in neighborhood business/restaurant investments and okay neighborhood becoming a very desirable neighborhood. If I could have seen the writing more clearly on the wall, I would have leveraged and bought more in this neighborhood when this duplex was purchased -- said everyone who didn't buy much between 2009 and 2015.

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

House Hack to later be held as rental.

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

MLS, with agent and negotiated a few thousand off asking price. Property had been flipped with contractor-grade kitchens a few years prior to purchase...so everything was pretty much turnkey, minus a new electric panel needed to add second washer/dryer hook ups in the basement.

How did you finance this deal?

Portfolio lender with 10% down, and 5 year fixed and then ARM thereafter. Refinanced in 2016 at 3.75% on 30 year fixed, equity in property required no more money invested to avoid PMI.

How did you add value to the deal?

Bought at the right time...

What was the outcome?

Buy and Hold that is cash flowing $250+/door each month.