First House Hack under Contract

[Michael Maxwell]

Investment Info:

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

Purchase price: $320,000
Cash invested: $37,750

3 family unit
2 x 3 bedroom 1 bath
1 x 1 bedroom 2 baths (strange right?)

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

One learning about House Hacking, I knew that our first deal would have to be one, a place to live, save, and grow equity while looking for the next deal. We also thought it would be a good way to gain much-needed experience in investing, from renovations, remodeling, and of course being a landlord/property manager.

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

Well, funny enough a good friend's wife posted it on Facebook and my wife asked if I wanted to buy it, I said "yes?" and its been a thrill ride ever since.

How did you finance this deal?

We are financing through a small mortgage lender that was recommended by the realtor who my wife was working with while looking for bigger offices for her practice. The banker he recommended is definitely knowledgeable, and very responsive.

How did you add value to the deal?

We are updating/upgrading one of the Kitchings (floors, cabinets, and appliances) and adding a new Kitchen to the 3rd unit along with a mudroom since that will be the unit that we pan to move into.

What was the outcome?

Still being worked out, once we close the outcome will be concrete

Lessons learned? Challenges?

1. Things can happen that can will cause delays.. Health scares for example.
2. You've got to have an abundance mindset in this business.
3. The universe is awesome and things will always work out for you when you expect them to.
4. Do your due diligence.
The challenge was reacting positively to new information and trusting the process and people you are working with.