House-hacked first home/rental property

[Scot K.]

Investment Info:

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

I bought a two-story duplex, renovated it and I live in one of the units. I had no I idea what I was doing, it literally took blood, sweat and tears but three years later, I have great tenant and I've learned so much.

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

I initially wanted to buy a single family home, renovate it create an appartment suite on the basement level and rent it out while I lived upstairs. But after doing some research I realized I'd be better off buying a multi-unit property.

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

It wasn't a deal, I paid more for it than I should have. I had been looking and getting beat out of deals for months and grew desperate and impatient. A terrible combination for a new investor.

How did you finance this deal?

Another mistake. I used down payment assistance with a FHA 203kb loan.

How did you add value to the deal?

Yes.

What was the outcome?

I got a great tenant and it's now profitable.

Lessons learned? Challenges?

Take your time, you can't change the location of the property, so get it right the first time.