Househacking in the Lansing, MI area [Grand Ledge]

[Ryan Taylor]

Investment Info:

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

Purchase price: $126,000
Cash invested: $20,000

This property was a househack/small rehab in a highly desirable area outside of Lansing, MI. My wife and I lived in it for exactly 1 year then moved into a small ranch in the same area. I plan to hold on to this long term and try to acquire similar properties like it using creative financing. This took more work/time than intended but due to that, I've learned a ton and am comfortable not only taking on more properties for myself, but also with helping guide clients as well.

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

This is in a highly desirable area in Grand Ledge, MI. I knew there was work to be done but thought taking on a house hack AND rehab would speed up the learning curve. It has been a lot of work but I choose to tenant-proof as my rehab strategy.

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

This was on the MLS and had been sitting on the market for a few months. The seller was firm on cashing out so I was able to get it under asking price with an FHA loan.

How did you finance this deal?

FHA

How did you add value to the deal?

I've completely rehabbed the 1st and 2nd units, 3rd unit was already updated a few years back. The unit 1 and 2 updates have allowed me to increase rents to market or slightly above, since they are new and demand is high in Grand Ledge.

What was the outcome?

We lived for free initially and now after moving out and finishing unit 2, cashflow is approximately $650 per month.

Lessons learned? Challenges?

Everything takes longer and is more expensive than anticipated. The quicker you do more work, the quicker you learn how to estimate rehab costs, making you more comfortable in pursuing additional properties.

At first I would get anxious if there were tenant issues, asking myself how the heck I'd get them fixed. Then as time passed, I just realized I now could fix a good portion of issues. If not me then I just needed to know WHO to contact. This took the emotion out of it.

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

I worked with David Hall, now he is my business partner and we have formed the Achieve Real Estate Team. Together we help others repeat the same processes we have been through on our own RE journeys.

[Connor Anderson]

This is awesome! Really cool to see someone on BP house hacking in my hometown. Grand Ledge is a really popular town and should continue to increase in value. Congrats!