Investment Info:
Small multi-family (2-4 units) buy & hold investment in Spokane.
Purchase price: $155,000
Cash invested: $5,200
Upper/lower duplex located in Spokane, Washington, five minutes from downtown. I currently house hack the property and have a great tenant in place!
What made you interested in investing in this type of deal?
After researching and educating myself on REI, it was obvious that house-hacking was the only chance I had to get my feet in the game. I knew I wanted a duplex because I didn't want litteral "roommates" and that it would fit my lifestyle better.
How did you find this deal and how did you negotiate it?
I found the deal through a real estate agent who found the deal off market being sold as part of a 1031 exchange. Becuase of the 1031 exchange, the seller needed a flexible buyer that could be on standby until they could put everything together. I was that buyer. In exchange for being flexible, I was able to get a great deal.
How did you finance this deal?
FHA 3.5% down from a local bank.
How did you add value to the deal?
No upgrades needed for the location.
What was the outcome?
So far so good. I currently rent the upper unit for $715/month (below market). I anticipate renting the unit that I am in for $800 when I decide to move out.
Lessons learned? Challenges?
I've learned a ton about being a Landlord. The first tenant that was in the property when I bought it was AMAZING. He would pay my two days before the 1st every month, never heard a peep from him, and he made my life easy. Long story short, the tenant had to move for family reasons and that's when my learning started. I put the rental on the market and made too quick of a decision to put someone in who wasn't quite qualified. Whoops. Got rid of that tenant, and now I have a great tenant again!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Jon Biron (agent)
Dustin Masterson (Lending Officer with Numerica Credit Union)
