Sharing my first deal

[Hayden Kutemeier]

Investment Info:

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

Purchase price: $128,000
Cash invested: $6,000

1800 sq/ft duplex, 2 bed 1 bath per unit. rents at $775/unit. Currently a house hack for me.

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

I needed a place to live after graduating college and saw the house hack as a great way to have someone else pay the majority of my mortgage.

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

Found the dulpex on Zillow and negotiated through a realtor. After utilizing a first time home buyers loan and talking with the sellers they agreed to cover closing costs + security deposits of the tenets. I put 1K down for earnest money and the day I closed got a cashiers check cut for $35.50, thats essentially all it cost me to purchase the property.

How did you finance this deal?

Traditional loan. 3.750% over 30 years

How did you add value to the deal?

I renovated the side I was going to live in, including fresh paint, all new flooring and bathroom upgrades totaling around 5K

What was the outcome?

I still live in one side and am currently looking for my next deal. I believe with the upgraded I've done I should be cashflowing around $550/ month on the property when I move out.

Lessons learned? Challenges?

I learned plenty about basic remodeling, installing durable flooring and changing light fixtures etc. But am more interested in how to fund deals through alternative ways going forward. I plan to explore the BRRRR method for my next buy.