N. St. Paul Duplex House Hack

[Jeff Schemmel]

Investment Info:

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

Purchase price: $310,000
Cash invested: $12,300

Contributors:
Tim Swierczek, Adam Tafel

house-hacking my first duplex. cost of living reduction ~$500/month after all expenses paid and saving for repairs. Adding 2nd bedroom on the main level to increase rental flexibility and value. renting that to friend/family during house-hack for additional $500-$600/m savings. Expecting to cash flow between $200-$250 per door after moving out.

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

cost of living reduction, more space than an apartment, and starting the momentum for more real estate investing.

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

Found on the MLS, seller was an investor cashing-out on some properties, made a deal to replace the lower unit furnace and pay closing costs.

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

will add 2nd bedroom in lower level unit to increase rent and tenant pool

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

Tim Swierczek for lending (genius lender, and can get very creative to help you solve problems)
Adam Tafel for investment-minded real estate agent - he's the reason I found the value-add and successfully negotiated with the seller.