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 must have done just about everything wrong that I could have and it's still going well. I am currently cash flowing about $300 per month while I live here for free after I purchased this on a conventional loan. When I move out, it should be about $700/mo. Because of that, I have to live at the residence for 1 year. After 1 year is up, I plan to purchase property 2.

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.

[Will Fraser]

Well @Matthew Sprott, though there were surely bumps in the road, you're wiser in the ways of real estate gold and you'll be set up for success for that second purchase!  Keep at it, and let that $700 flow in year 2 :)