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Updated about 3 years ago,
Cincinnati OH (Norwood) House Hack
Investment Info:
Small multi-family (2-4 units) buy & hold investment in Norwood.
Purchase price: $255,000
Cash invested: $12,750
Purchased a duplex for $255k as a house hack for my first REAL investment (my first purchase i had no idea what i was doing and wasnt interested in investing).
I put 5% down on $255k ($12,750 w/ seller paid closing costs) and moved into the lower/nicer of the units. Both units are 3bd/1bath. I am a big fan of purchasing larger multifamily buildings as a house hacker and wish i had the knowledge i do now and would have gone for something much more expensive.
What made you interested in investing in this type of deal?
After living in a condo by myself because i was a big bad 22 year old who deserved his own space, i started learning about real estate and traded in my $1200/mo payment for a house hack that gave me a 3-bed unit all to myself for only $300/mo out of pocket.
How did you find this deal and how did you negotiate it?
This deal was on the market back in 2019 right before COVID hit. The realtor I was using at the time actually had no idea about investing and I was basically doing all of the work but to be fair i was new to investing as well.
How did you finance this deal?
5% down conventional loan
How did you add value to the deal?
This was a turnkey duplex
What was the outcome?
Property today is worth $300-$315k
Property is rented out at $2600/mo ($1300/unit) and cashflows about $345/month after all expenses are paid.
Lessons learned? Challenges?
The owner of the property had a brand new AC unit that was set to be installed but he never did. During escrow, i put in the contract that we would not close on the property until it got installed. The day of closing i went over and the installer met me over there to show me that it worked. He turned the AC on and the unit kicked on. Good enough, right? WRONG. The installer didnt do the job correctly and basically ruined a brand new unit. LESSON LEARNED - get this inspected before closing.