House Hack #1: Success!

[Shane Braunworth]

Investment Info:

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

Purchase price: $175,000
Cash invested: $21,750

Projected monthly cashflow is $450 after I move out of the second unit.

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

Found on the MLS and negotiated with inspection results through my real estate agent. Additionally, appraisal came in low, and the seller adjusted the price because of that.

How did you finance this deal?

3% down no PMI owner occupied first time home buyer bank loan.

How did you add value to the deal?

Added a central AC system to compliment the vented heating system and raised rent from 1075 to 1175.

What was the outcome?

Good tenant currently placed in first unit and living in second unit (huge housing savings for me). Well constructed house for minimal problems so far minor TLC before move in.

Lessons learned? Challenges?

Shop around for better bank loans. I had slightly high fees and could have potentially gotten a lower interest rate even with PMI given the current home buying climate.

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

Absolutely, if interested in buying a house in the Norristown, King of Prussia, or Phoenixville area message me for more details.

[Clark Kirkpatrick]

Congrats, @Shane Braunworth! I just drove through Norristown this morning and it looks like it's headed in the right direction. Your cashflow number is awesome for a house hack!