First Time Homeowner House Hacked a Duplex

[Nicole Caicedo]

Investment Info:

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

Purchase price: $389,900
Cash invested: $24,000

I'm currently house hacking a duplex. The rents cover all mortgage and utility expenses, and still cash flows.

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

I had some cash saved up, and wanted to put it to work. I knew I didn't want a corporate job forever, and liked the idea of earning passive income. I started looking for my first home, originally looking for a single family home I could rent with friends. I soon learned that a multifamily home would be a way better deal and patiently looked for one.

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

I found my deal through standard MLS with the help of my real estate agent.

Homes were selling far over asking price. I submitted an offer the day it went on the market without ever seeing it. We luckily got our offer accepted at the asking price, and got them to replace the furnaces as well.

How did you finance this deal?

Conventional loan

How did you add value to the deal?

...I just got lucky.

What was the outcome?

We got the home for asking price, even though similar homes in the area were sold in cash for tens of thousands more. It was rent ready after a quick coat of paint.

I found tenants on FB marketplace, and actually set up a showing time before I officially owned the place, and let all interested potential renters see it during the showing time. Within the first half hour of the showing we had a good application come in.

Lessons learned? Challenges?

Even simple rehabs, like painting are time consuming and can be draining. Really assess if that is in your wheelhouse when looking for houses.

Also, advertising rentals on platforms like facebook can be really effective.

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

Maple Lane Realty
(612) 290-1340
https://maplelanerealty.com/