First Investment! House Hack Duplex to fully rented

[Blake King]

Investment Info:

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

Purchase price: $290,000
Cash invested: $25,000

Purchased as a live in investment / house hack. Remodeled both units slightly. Moved out 1 year later as i transitioned careers and locations. Currently rented out cash flowing around $700 / month after mortgage and utilities (not including cap x).

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

Bigger pockets of course!

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

Found on Redfin, offered what i was willing to pay for my strategy.

How did you finance this deal?

Conventional financing.

How did you add value to the deal?

Bought with redfin while i was a part time employee to get a break on commissions. Lowered insurance costs by insuring it myself. Sweat equity in doing a lot of the remodel ourselves while living in one unit. Increased rent and managing it ourselves. Refinanced to lower monthly payments and increase cash flow and leverage.

What was the outcome?

$700 / month cash flow, proud of it for our first deal, and loved living there while we could. Hoping to increase cash on cash return in our next properties.

Lessons learned? Challenges?

Biggest lesson, cash on cash return, and the value of having cash.