First Home 3 family House Hack

[Matt Carr]

Investment Info:

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

Purchase price: $465,000
Cash invested: $135,000

My wife and I bought this 3 family home as our first home using an FHA loan and did a house hack for 3 years.

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

The idea of house hacking and having 2 rental incomes cover our mortgage

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

My friend/realtor/mentor showed us the deal and we negotiated buy cost down to $465000 from $499000 after a home inspection came back with numerous issues

How did you finance this deal?

FHA with 3.5% down

How did you add value to the deal?

Used a 203k loan and capital our of pocket

What was the outcome?

After starting an electrical contracting business and starting a family, we finally decided to get back into real estate investing this year. I was able to do a refinance cash out of this property. The bank appraisal can in at $1,500,000, with fair market value around $1,600,000. So in 8 years, purchase price and money invested has almost tripled.

Lessons learned? Challenges?

I wish I stayed on the investment plan all along instead of taking a 8 year break!

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

Bobby Petrelli Jr with Harbor One Mortgage, George Pepdjonovic with Realty Edge