House hack Duplex with 1%rule and less then 1% down

[Kyle Reece]

Investment Info:

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

Purchase price: $238,000
Cash invested: $2,198

House hack duplex, apartment brings in $900 when purchased market rent is $1200 for that unit currently raised to $1000. Will increase over next couple years unless tenant moves out. Main house would rent for $1500 if we were not living in it. Currently renovating main house to add some equity and pull out some money

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

Buy and hold is my preferred strategy. Needed to buy for family, decided house hacking to also increase portfolio.

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

MLS and normal negotiations. Multifamily in my market was not subject to inflated covid prices. Seller weaseled out of contract to try and get other offers. After one money they came back to my original offer.

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

house hacking ROI after we move out will be over 200%

What was the outcome?

awesome investment with barely any money done

Lessons learned? Challenges?

lesson learned: always expect a long closing with financing. Challenges: This deal took an extra month to get locked up under contract because the estate attorney signed the contract as the executor and then 3 days later rejected the contract as the sellers attorney. They wanted to try and get more buyers to make offers but received nothing after 30 days and accepted my original offer. Make sure time frames have a buffer to account for unknowns.