First Duplex House-Hack

[Nic Wilson]

Investment Info:

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

Purchase price: $409,500
Cash invested: $20,000

Duplex house hack.

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

Long term retirement, buy and hold.

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

MLS, it was originally listed for $485,000 for 6 months during the VOVID lockdown, which didn't have one walkthrough because everybody was so scared during the beginning of the pandemic. It was re/listed at $420,000. I offered $405,000, and we settled at $409,000. My sales background helped during negotiating. My uncle has 30 years of professional real estate experience and was my agent so that helped a lot to, but I think my personal letter to the owner is why I got the deal though.

How did you finance this deal?

Military VA loan

How did you add value to the deal?

Invested 20k of personal money, floor to ceiling paint, new floors, fans, light fixtures, door hardware, new tile around master tub, outside landscape work for main entrance walkway, new gutters.

What was the outcome?

I raised the rent and now cash flow $415 a month, while still living in the 2 bed 2 bath unit. I plan to make $1,915 in monthly cash flow when I move out and into the next property, by renting my unit out for $1,500.

Lessons learned? Challenges?

Everything takes 2 times as long as you think it does and about 10-20% more money than expected.

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

Bob Pauley - he covers Western Montana, but mostly Ravalli County, Montana.

https://bobp.withwre.com/