All Forum Posts by: Jeff Schemmel

Investment Info:

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

Purchase price: $310,000
Cash invested: $12,300

Contributors:
Tim Swierczek, Adam Tafel

house-hacking my first duplex. cost of living reduction ~$500/month after all expenses paid and saving for repairs. Adding 2nd bedroom on the main level to increase rental flexibility and value. renting that to friend/family during house-hack for additional $500-$600/m savings. Expecting to cash flow between $200-$250 per door after moving out.

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

cost of living reduction, more space than an apartment, and starting the momentum for more real estate investing.

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

Found on the MLS, seller was an investor cashing-out on some properties, made a deal to replace the lower unit furnace and pay closing costs.

How did you finance this deal?

FHA 3.5% down

How did you add value to the deal?

will add 2nd bedroom in lower level unit to increase rent and tenant pool

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Tim Swierczek for lending (genius lender, and can get very creative to help you solve problems)
Adam Tafel for investment-minded real estate agent - he's the reason I found the value-add and successfully negotiated with the seller.

I'm closing on my first duplex investment as a house-hack just before christmas! As I look ahead to future properties, and to a rather aggressive goal I have set for cash flow in the next 3 years, I need to be able to recycle my cash. BRRRR seems like a great way to do that, and I would love to find people who've used this strategy with success in the MSP area who are willing to share what a deal looks like and give me some clarity on the start-to-finish so that I can try and visualize how I get to my goal more clearly.

Happy to help in any way I can for anyone who's willing to share :)  thanks again, from a new investor.

Hi everyone, I just finished the inspection period on my first Duplex House-hack, and while I wait for appraisal, I'm working out some finer details of inheriting a tenant and becoming a landlord! I'm buying with an FHA loan, and will owner-occupy according to that rule for at least 12 months. I'm finding myself in an interesting (yet seemingly common) situation with the home address vs. the actual Unit# addresses, which use Street#s instead of Unit 1 & 2 for example.

• Duplex property address is #1035
  
• Lower unit address on home is #1033 (I will occupy this one.)
• Upper unit address is #1035 (tenant occupied)

How do I handle this when it comes to my address on paper? If I use 1035 as my home address, my tenant who is actually occupying the #1035 unit will get my mail. If I put down #1033, will the FHA even realize that I occupy the property according to the requirements when the tax statement recognizes 1035 as the address?

The tax statements recognize the property as 1035, the title company says the legal home address is 1035, the county parcel map has 1035, and I signed the purchase agreement and loan application with 1035 as the home I'm purchasing, not 1033-1035.  The title company says it's not necessary to change it, but I still have the issue with the mail potentially going to the wrong tenant.

I welcome any and all advice per your experience!  Thanks again, and have a great holiday.

-Jeff