3.5% FHA Owner Occupied Duplex

[Jason Baron]

Investment Info:

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

Purchase price: $317,000
Cash invested: $60,000

Used BRRRR to add $120k in equity and refinanced $60k

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

This house we found off the market which had immediate upside to raise rents due to research of markets in the area.

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

We got pre-approved and looked for this deal for 3-6 months. Patience was important for this deal to happen.

How did you finance this deal?

We went to the bank and got a 3.5% FHA/VHFA owner occupied with a $5k state assist to help with closing costs. That $5k was due at the time of refinance.

How did you add value to the deal?

we totally remodeled the unit we were living in as well as some other smaller sweat equity things.

What was the outcome?

$180k increase in value.

Lessons learned? Challenges?

So many on both fronts. We cant wait to do the next one but more efficiently and quicker.

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

Attorney Mike Johnson & Joe Finnegan, also our refinance lender was Mark Severance.