First purchase- A house hack

[Kelly Skeval]

Investment Info:

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

Purchase price: $155,000

This was listed as a 6 bedroom 2 bath single family split level. After touring it, we figured out that with some small, inexpensive renovations we could turn the downstairs into a legal 3 bedroom apartment. Upon closing we did just that for around $2,000 we added a wall to separate the two apartments and installed a kitchen in the downstairs.

We rented the downstairs for $1500 including utilities and lived upstairs.

Current value: $260,000

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

mls and real estate agent

How did you finance this deal?

FHA with seller concessions

How did you add value to the deal?

immediately turning it into a duplex added value
We have renovated over the years

What was the outcome?

Within 2 years we had $40,000 equity.
5 years after purchase we used a home equity loan from this property towards our down payment to build a duplex that we then occupied.
Now 10 years after purchase we have pulled equity again to purchase an 8 unit property
This property is a great cash flowing property that continues to build value every year