New Jersey Luxury House Hack In Essex County

[Shawn Mcenteer]

Investment Info:

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

Purchase price: $525
Cash invested: $80,000

Upper/lower duplex with luxury master loft steps away from lively downtown and NYC direct bus line

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

Wanting to continue the journey of creative cash flow for my family, we wanted to make sure we had enough income to pay for our single family mortgage

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

MLS

How did you finance this deal?

private funds

How did you add value to the deal?

Renovated both units. Opened kitchen up, installed recessed lighting throughout, updated kitchens and baths, refinished floors, replaced siding, upgraded electric panels, replaced pantry with half bath, converted illegal third floor unit with luxury master sweet and laundry room attached to second level making it one very large rental above 1st floor apartment.

What was the outcome?

Added over $125k equity in under 1 year. Created Cash flow positive luxury rental. Increase 1st floors rent by $700 (second level had no tenants or rental history)

Lessons learned? Challenges?

House Hacking a duplex with a family is amazing because my commute home was up a flight of steps. Use subs to make renovations move must faster. First property we acquired with tenants, ultimately worked out well.