Partnered with my brother to buy my first house hack!

[Matt Alrutz]

Investment Info:

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

Purchase price: $360,000
Cash invested: $85,000

For my first deal, I partnered with my brother to house hack a duplex in Philadelphia. This duplex doesn't come close to the 1% rule, but still cash flows. We inherited tenants in the back unit paying market rate and we're only responsible for water, sewer & trash, so our operating expenses are kept low.

Once we rent out both units, we'll cash flow around $600/month (~9% CoCROI) after repairs (5%), vacancy (7%) and CAPEX (7%), not including equity growth, tax breaks, and house hack savings.

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

My brother and I were both looking to house hack in order to cut back on our housing expenses and begin to build wealth through rental property investing. We decided to combine our efforts, expanding the range of potential deals for both of us.

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

We found this on the MLS and analyzed comps to come up with our top price when the seller called for highest and best offers.

How did you finance this deal?

We used an owner-occupied conventional loan with 15% down through a local mortgage broker.

How did you add value to the deal?

The property was rent-ready when we bought it (which is what we were looking for, since we knew we'd house hack), but we found opportunities to add value through remodeling the shower in the front unit.

[Will Fraser]

Congratulations on the successful house hack, @Matt Alrutz!  Keep evaluating deals and grow your experience and portfolio!