First House Hack (belated post)

[Brian Loibl]

Investment Info:

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

Purchase price: $295,000
Cash invested: $12,000

Contributors:
Tim Swierczek, Jordan Moorhead

Up/Down duplex in the Northeast Minneapolis Arts District. Both units are 2 bed - 1 bath and were both vacant at time of purchase. I'm house hacking the property, fixing up one unit at a time to get it rented out to start paying my mortgage.

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

I've been living in the area for over a year and have come to enjoy the atmosphere and it's close proximity to everything. The style of these old homes are also very intriguing. Both units needed some renovations so it also allows me to add value while learning the ins and outs of these old properties.

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

My agent found it on the MLS. Negotiated down a little on the price, however, I was using a low down payment option (FHA 203K) so it didn't change much for me. Also, negotiated the seller to pay closing costs, keeping as much money in my pocket as possible.

How did you finance this deal?

3.5% FHA 203K loan

How did you add value to the deal?

Both units require some renovating to meet FHA requirements (hence the 203K loan). I'm also doing the cosmetic work myself to further increase the value of the property.

What was the outcome?

TBD

Lessons learned? Challenges?

The closing process can fluctuate between hectic and dead calm, you just have to be ready for what comes your way. It's hard to know the right things to do at every moment, but a good team is there to help.

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

Jordan Moorhead was my agent and Tim Swierczek was my lender. Jordan was always available to show the property and I was able to bounce a lot of questions off of him. He knows the area well and had some great insight. Tim was great at walking me through the 203K process and kept me in the loop with all that was happening. They both know how to educate and work with new investors, which was a great help. This type of quality work is likely the reason they are suggested a ton on BP.