House Hacked Duplex with Great Cashflow

[Brandon Sok]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $89,000
Cash invested: $48,000

Duplex that we House Hacked. Put 20% down + 30k in rehab expenses. Cash flow is $800 per month. ARV is $170,000. We haven't fully executed the full BRRR but are considering.

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

I wanted to get started in REI and also reduce living expenses. This duplex checked both boxes.

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

I went to a showing when the house was listed at $139k then waited 1 year till the price eventually dropped to $89k. My wife and I offered that day.

How did you finance this deal?

FHA 30yr at 3.75%

How did you add value to the deal?

Completely rehab of the interior of the house.

What was the outcome?

Great first home for my wife and I with continued cash flow since we've moved out.

Lessons learned? Challenges?

Always add a 15%+ cushion to a rehab project! After passing inspection we had to replace every inch of plumbing in the house. Also, if house hacking with a spouse, make sure you communicate expectations early and often. Stress adds up so it is important to be on the same page.

[Alex Olson]

@Brandon Sok Great work! This is exactly the way to do it!