4-Plex house hack College Station, TX

[Gregory Schwartz]

Investment Info:

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

Purchase price: $280,000
Cash invested: $110,000

We closed on a 4 plex with House Hack and BRRR plans.

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

A 4 unit house hack is a low-risk way to start our multifamily buy and hold portfolio.

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

Driving for dollars we saw a distressed property being made ready by the owner. So we stopped and asked about the neighborhood and next thing we knew we were making an offer.

How did you finance this deal?

We had the cash but not the income, so we used a conventional loan, 80 LTV 30 year at 4.12%.

How did you add value to the deal?

The house appraised for 307k before we ever moved in. Our next move is to renovate and fill 2 vacant units. On top of that, we plan on adding a new roof and new siding. We will use property management software to provide a more professional experience to our tenants.

What was the outcome?

TBD, looking to refinance into a VA loan, 100% LTV at 335k and BRRR all our money out of the deal.

Lessons learned? Challenges?

We downsized from 1700 sqft SFH, granite countertops, 2 car garage to a 950 sqft roach-infested 2 bedroom apartment. But after 2 weeks this feels like the new normal.

[Gregory Schwartz]

After 1 week: In 2 of 4 units we've completed the demo, the plumbing has been shored up, the bug killed and the property management software prepared and ready to go!