House hacking in Nashville

[Walter Miltenberger]

Investment Info:

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

Purchase price: $400,000
Cash invested: $20,000

House hacking. It's a duplex with the unit we live in on the main floor and the rented unit in the basement. Currently renting the property ourselves, but buying just as soon as some property line changes take effect. It cashflow while we rent, but when we purchase the house it will bring the cost of our mortgage/property taxes/utilities down to several hundred dollars/month.

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

After chatting with some college students that rent near me, I realized how much we could rent our finished basement out for.

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

I had been looking to purchase the property we were renting for a while and everything kind of fell into place. Landlord wants to sell and we want to buy and are currently renting so it's pretty easy. They are splitting the lot into two so we are currently waiting for that to get pushed through before we can start the purchasing process.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

The current owner doesn't have to put the house on the market so it's made it very easy for them.