First house hack in south city

[Jeff Bosaw]

Investment Info:

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

Purchase price: $124,000
Cash invested: $6,500

Shotgun duplex 1B/1.5Bath with a newly rehabbed half building. New flat-top roof on the whole building and new kitchen and HVAC on the side we are living in.

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

Ability to use a low down payment loan through the home possible program because FHA would not be approved on this as-is sale.

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

MLS through redfin. Used a realtor to get an early bid which was accepted.

How did you finance this deal?

Home possible Loan which also removes PMI once 20% is paid off. Paid the down payment with excess savings

How did you add value to the deal?

TBD but hoping to rehab the other unit while living on the other side. May also do short term rental to increase cash flow after moving out. May also try Net metering the electric and go solar. Hopefully, break-even within 5-7 years and start making more money from billing tenants for electricity.

Lessons learned? Challenges?

An older home that was rehabbed very cheaply and having issues with bad planning of electric outlets and not finding studs behind walls that typically have wooden studs. Good for practicing minor electrical work and other cosmetic fixes.

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

Highly recommend working with Jenny Lee through palmer house realtors. She was quick to answer calls and texts and visited many properties with me until we found the right one about 6 months after starting searching.