House-Hack First Deal

[Christian Fregoso]

Investment Info:

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

Purchase price: $160,000
Cash invested: $5,600

House-hacked into a local 2-story brick duplex/townhome in the Northwest Arkansas area. Property was built in 1974 and has 1,100 sqft of livable space to each side. Each unit has two bedrooms, 1-1/2 bathrooms, and central cooling. Additional features include washer/dryer hookups, sundeck balconies, and a detached carport for parking.

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

The interest came from listening to several people on the BiggerPockets podcast and forums telling their story about discovering passive income and how they have reached financial freedom from real estate investing. The small multifamily market really grabbed my attention when I understood how one can achieve multiple streams of income from one property. As I dived deeper into the small multifamily properties, I wondered how I could get started with one some day.

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

Driving for dollars! Really works! For about a year I have passed by this property thinking when it will sell or if it has sold. Initially this was for sale before the pandemic and had several showings, but suddenly this went off market from one day to the next. No reason was given as to why they had removed it from the market. Fast forward to a year later, driving by this property again I decided to call the same agent and inquire about it. One month later and I have my first property.

How did you finance this deal?

FHA Loan, 3.5% IR, 30-Yr.