First Househack in San Diego!

[Zachary Jensen]

Investment Info:

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

Purchase price: $525,000
Cash invested: $80,000

Househacking this duplex. We’ll need to do some work still, but it will cash flow when we move out a few years down the line.

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

I have always been interested in buying a small multi family home for our first home purchase. It is also the only way we were able to afford a home in San Diego.

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

Found it on the MLS. We were able to put it under contract before it was officially on the market though by coming forward with a conventional loan offer instead of an FHA offer.

How did you finance this deal?

Conventional loan with 15% down. We had to borrow from a 401k loan and from my parents in order to come up with the down payment.

How did you add value to the deal?

It appraised for 35k over our offer price, so that was a good start. We also plan to replace carpets, add A/C, and remodel the kitchen at some point.

What was the outcome?

We just barely closed on it, so I’ll have to let you know!

Lessons learned? Challenges?

I learned how valuable it is to have quick access to capital from a loan. I intend to open a HELOC as soon as I'm able to in order to purchase future properties.

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

I worked with my brother Chris Jensen who is a real estate agent here in San Diego and Marty Brumfield was our loan officer. Both of them were excellent to work with and very knowledgeable.