My first multi-family home

[Frank Rubino]

Investment Info:

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

Purchase price: $425,000

I'm house-hacking this 2-family home I purchased in 2016 for $425,000.

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

I had two rental condos and was thinking of buying a third when I realized a house is likely to appreciate faster than a condo. Plus, I was interested in the house-hacking concept.

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

I worked with a local Realtor.

How did you finance this deal?

I was approved for an FHA loan that allowed me to make a down payment of only 3.5%. In 2020, I refinanced into a traditional mortgage which lowered my monthly payment, and now I can use an FHA loan again on a new purchase.

How did you add value to the deal?

I upgraded the heating system to natural gas furnaces. I've done a lot of painting and yardwork. Sometimes, simply keeping a place clean can make a world of difference.

What was the outcome?

As of summer 2020, the value has increased to $475,000-$500,000. I'll probably sell if it reaches $575,000.

Lessons learned? Challenges?

A house is a lot more maintenance than a condo. Living in the same house as your tenant is not always easy. Finding a quality tenant is especially important in this situation. Also, the FHA loan is a powerful tool in real estate investing as it allows you make a much lower down payment - 3.5%.