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%.

[Michael Barnhart]

@Frank Rubino another great story. Thanks for sharing. Does the rent cover your PITI and expenses? Or do you still have to pay to live there? How much longer do you plan on staying there?