First Duplex in High Cost Area using FHA loan

[Viet Nguyen]

Investment Info:

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

Purchase price: $455,000
Cash invested: $91,000

We bought it with an FHA loan, live in one while we fixed up the other side (one side was being evicted, the reason why nobody wanted to touch this deal). The eviction side had a roach infestation, we didn't realize how hard it was to get rid of those buggers. We did most of the rehab ourself and there was time we felt we got way over ourselves, thoughts like " did we overpaid, what are we doing, is there enough money to keep us going, we need to rent this property out ASAP", all those crazy thoughts subsided and now we can't believe we got past that. Also, my girlfriend at the time (now wife) was a trooper. She stuck with me through the whole process, and now we both agreed we can't do a big project like that again. For all newcomers, talk to your significant others and set expectations of the BRR strategy.