My first instatement property (My house hack from 2014)

[Nicholas Ludwiczak]

Investment Info:

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

Purchase price: $110,000
Cash invested: $3,850

I lived in one half for the first year, fixing it up while renting out the other half. I bought by primary residents after a year of buying this property.

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

I always wanted to own investment property after reading Rich Dad, Poor Dad and house hacking made sense since I could get it for 3-1/2% down.

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

I found the deal on the MLS (Zillow) and there wasn't much interest in the property giving me some leverage during negotiation.

How did you finance this deal?

FHA with 3-1/2% down. This was my first property and I was able to live in it for the first year.

How did you add value to the deal?

I am handy so I was able to put some sweet equity into the building.

What was the outcome?

The property is doing well and I have some good tenants in there now. It doesn't cash flow the best but for only putting about $4,000 down on the property, it's doing well.

Lessons learned? Challenges?

Always account for CapEx expenses, making your estimates higher when buying older properties.

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

Stephanie Spaeth, my real estate agent was great. https://www.realtor.com/realestateagents/stephanie-spaeth_marshfield_wi_1571653_55789890