1st House Hack Duplex

[Reece Stanley]

Investment Info:

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

Purchase price: $107,000
Cash invested: $20,000
Sale price: $160,000

House Hack Duplex. Sold in a 1031 Exchange for a small apartment building.

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

This was my first home purchase. Off setting my mortgage by renting out the basement unit was very appealing to me.

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

This was an MLS deal that had been on market for a while. It was listed at $114,500 and was vacant.

How did you finance this deal?

Conventional Financing

How did you add value to the deal?

Refinished both units and increased rent. The basement unit covered the mortgage and utilities allowing us to essentially live there for free.

What was the outcome?

After holding it for over four years we decided to reposition into a larger multi-family.

Lessons learned? Challenges?

With this being my first property there were many lessons learned.
*Do your research.
-Understand what a conforming vs non-conforming unit is.
-Understand tenant/landlord laws.
*Always screen your tenants and don't do them any favors by bending your requirements