First investment/ house hack

[Account Closed]

Investment Info:

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

Purchase price: $160,000
Cash invested: $42,000

This was my first purchase and am currently house hacking!

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

I was always interested in the 2-family concept because it would allow flexibility in case I wanted to move out of the area, and also to have someone else help with the mortgage and save for the next one.

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

I got lucky on this one. I had told my friends and basically everyone I knew that I was looking to buy a two family home. Just so happened that my friends Dad and middle school english teacher had one for sale. There were a couple of bids, but I came in $1,000 higher and got the deal.

How did you finance this deal?

Conventional financing- had to put 20% down.

How did you add value to the deal?

Since I purchased the home- I have been renovating both the interior and exterior. Vinyl plank floors, paint, refinishing hardwoods, new hot water tanks, etcc.

What was the outcome?

I'm currently renting out one floor for $1,000 / month with an agreement to raise rent to $1,100 at the start of the year. When I move out the plan is to rent both units out for $1,200 each. Cash flowing about $1,000 after the mortgage and no other expenses.

Lessons learned? Challenges?

For my next deal I would definitely bring the deal to multiple lenders to see who could get me the best financing. Also ask for owners to sell property that isn't for sale on the market!

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

This was a private sale, but I had the help of friends that were agents.