House Hacking my way into Real-estate

[Brian Wolf]

Investment Info:

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

Purchase price: $190,000
Cash invested: $13,500

First investment property! An over under duplex consisting of a 2B1B main unit and a 1B1B top unit. House-hacking my way into the investor world with this one and learning the ropes as I go.

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

I wanted a way limited risk opportunity to get my foot in the door with real-estate. I knew I had so much to learn and ax sharpening to do but couldn't bare signing onto another lease where I was paying someone's mortgage. Without wanting to wait I knew house hacking would be a secure way to start.

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

Used an agent and it was found on the MLS.

How did you finance this deal?

3.5% FHA loan

How did you add value to the deal?

I did a substantial bathroom and kitchen remodel as well as removing the old singular oil furnace (Which I footed the bill on since it wasn't a split system) and added central air and a separate upstairs unit so the tenant now pays their own heat.

What was the outcome?

Still currently house hacking.

Lessons learned? Challenges?

Doing my own rehab was a valuable experience but showed me I don't want to be the guy with the hammer. Buy right, Buy right, Buy right. Do I want to own another 110 year old home and the headaches that come with?

[Andrew Powers]

Congrats on house hacking! What else have you found annoying / needing maintenance on your house since it's old?

One suggestion to save on heating / cooling bills is to put in insulation board and spray foam insulation where there are drafty areas. In my old house, the basement needed a lot of attention so putting in lots of extra insulation helped saved $$$