House hack in Delray Beach

[Matthew Brill]

Investment Info:

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

Purchase price: $650,000
Cash invested: $15,000

Triplex
1- 3 bed 1bath and 2- 2 bed one bath units
100 yards from the intercoastal

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

This was my first house hack. I wanted a nice place to live that would also subsidize my living expenses. I thought this area would be a good location for potential appreciation and the location would always make it easy to rent. Potential future use as a short term rental.

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

MLS. Made a low offer and negotiated off of the inspection.

How did you finance this deal?

Owner occupant loan, zero money down leveraging an investment bank account portfolio (my mom's).

How did you add value to the deal?

Replaced front doors, painted, changed out the floors, other minor cosmetic changes.

What was the outcome?

I have since moved out. I am in the process of refinancing due to lower rates and lots of appreciation (the property appraised for almost $1 million!). The new mortgage will increase my cashflow by about $400/month.

Lessons learned? Challenges?

I inherited the tenants when I bought the place and they were a huge headache. They were used to their living conditions and below market rents. After bringing the units up to market they were unaccepting of the higher rent rates and caused some trouble because of it.