Maple Residence | House Hack

[Matthew Sprott]

Investment Info:

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

Purchase price: $240,000
Cash invested: $12,000

I love to look at this property and thinking about all the ways I screwed up. I must have done just about everything wrong that I could have and it's still going well and I love to tell the people that haven't made a step forward about how you need to take action because you basically cant lose if you do a little homework. I am currently cash flowing about $300 per month while I live here for free after I purchased this on a conventional loan. Because of that, I have to live at the residence for 1 year. After 1 year is up, I plan to purchase property 2. I think anyone can purchase property number one and shouldn't regret it if they do a little homework.

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

I just wanted to get out of the rent trap. Pay yourself... No wait have somebody pay you.

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

I found the deal on the MLS. I offered full asking price (a huge mistake and a rookie one at that) but after they accepted I had the property inspected where I got $12,000 in infrastructural repairs. Still I should have offered lower and negotiated lower regardless of the hot market. Don't be afraid of making a ton of offers.

How did you finance this deal?

Conventional loan through a local lender. 3% down.

How did you add value to the deal?

I've mostly done cosmetic upgrades and cleaned up the property. I've also freed up a room by moving the laundry out of a bedroom which was a $500/mo add.

Lessons learned? Challenges?

Take advice. I'm not smarter than those that have come before me. Get a mentor and dont just hear them, listen to them. Also, get a good realtor. A realtor that is invested in real estate already knows what you are looking for.