Investment Info:
Small multi-family (2-4 units) buy & hold investment in Placerville.
Purchase price: $749,000
Cash invested: $150,000
House Hack
Main home has over 2300 sq. ft. 3/3 on upper level - we'll live on this floor w/garage.
Downstairs is 1700 sq ft. 3/2 w/ garage. Will rent for $2200/mo utilities included.
Second home is 1050 sq ft. 2/1 w/garage. Rent is currently $1300/mo. Could easily get $1500-$1600, but we are taking it easy on the tenants, as they are the sellers - we did a rent back with them. When they move out, we'll put it at full market rent.
Gonna convert the kitchenette downstairs to a full kitchen... and update our kitchen upstairs w/ granite, etc.
PITI is $3,989/mo. Home has owned solar. When we move out in a couple years, well rent out the upstairs unit for ~$2500 and it'll cashflow pretty decent. In the meantime we get to live in it for cheap.
What made you interested in investing in this type of deal?
We wanted a little bigger house and another investment property. This one hits two birds with one stone. It's getting harder and harder to find cashflowing deals in this market, and after running the numbers on this one, it was a no-brainer for us.
How did you find this deal and how did you negotiate it?
Expired MLS Listing
How did you finance this deal?
20% down Conventional with a portfolio lender.
How did you add value to the deal?
haven't done anything yet. But we are going to convert the kitchenette downstairs to a full kitchen, update the kitchen and master bath upstairs, and raise the rents.
What was the outcome?
So far so good!
Lessons learned? Challenges?
Analyze deals, be persistent, think outside the box, make offers.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I represented myself :)
