House hack, getting me started in the game

[Tyler Mutch]

Investment Info:

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

Purchase price: $143,500
Cash invested: $10,000

This is a house hack, we spent the good majority of the funds updating the upper unit and will be able to begin renting it as of October 1st. Then we will turn our focus to the lower!

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

I was interested in cutting my rent expense, making a large dent into the biggest expense I have.

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

I found the deal on the MLS but offered about 15k under asking price because the rent was under market value. We have freshened up the upper unit hoping to be able to get about 950 for this unit now that we have done these updates!

How did you finance this deal?

I used an in house product from a local bank to finance this deal, I only put 5% down on this owner occupant knowing that I will be house hacking this deal!

How did you add value to the deal?

I have added value to the house by adding new counters and paint to the upper unit, I have added additional value by adding about 400 sqft of living space on the lower unit. This was achieved by converting a weird storage room into a "three seasons room", we added additional value by putting in a heat run, making it a 4 seasons room and adding that sqft to the house.

What was the outcome?

currently finishing the rehab, and being able to rent as of 10/1

Lessons learned? Challenges?

The biggest challenge has been balancing rehabbing both units while attempting to get the upper ready to be rented as soon as possible.

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

Great midwest bank was flexible with me in closing this deal!