Duplex house hack in Berwyn, IL

[Paul De Luca]

Investment Info:

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

Purchase price: $266,597

Deal was found through the MLS. This is a duplex house hack that my brother and I bought using a Home Possible loan (5% down) for $266,597 with a seller closing credit of $6,523. Total cash to acquire the property excluding the inspection and appraisal was $7,015 or $3,508 each.

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

House hack opportunity

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

Found the deal on the MLS. Negotiated a seller closing credit and was able to get the seller to complete some repairs costing $3k+.

How did you finance this deal?

Home Possible loan. We had to quitclaim my brother off the title of our first rental property.

How did you add value to the deal?

We plan to make improvements to the property during our time living here (about a year). We'll do interior painting, replace kitchen appliances, add central AC units to more rooms, and potentially replace the kitchen cabinets and some flooring.

What was the outcome?

With some improvements to the property (explained below), we expect to rent the garden unit for $1,000+/mo (1 bed/1 bath) and the 1st floor unit (3 beds/1 bath) for $1,500+/mo. We will be living in the 1st floor unit.