Philly Duplex House Hack

[Nick Brown]

Investment Info:

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

Purchase price: $400,000
Cash invested: $120,000

House hacking this Philly duplex while we rent out the lower unit.

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

Strong cashflow and good opportunity for easy value-add reno

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

Deal was found on the MLS

How did you finance this deal?

75% LTV with commercial loan since this was placed in an LLC

How did you add value to the deal?

Negotiated a good deal to start by being the first to offer during a crazy market.

Very light reno - paint, new trim, new light fixtures, outlets/switches, keypad door locks, new stove in one unit. Some light plumbing work was needed as well as pouring concrete in the backyard to slope the water away from the foundation.

What was the outcome?

Added around another 20% in equity through negotiations and reno. Currently living in the upstairs unit with a tenant scheduled to move-in downstairs this week.

Lessons learned? Challenges?

A good deal can still be found on the MLS!

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

My team and I are all licensed agents and investors. We worked together to get this deal done and structure it creatively to maximize ROI.