All Forum Posts by: Jillian Peterson

Hi Luke!

Yes, I intent to house hack as often as the bank allows financing. I would like to do some investment loan deals on the side, depending on how much capital we have access to.

I see you work in CO. I know markets are a bit crazy right now, but I will forever be looking for a little mountain SFR to escape to/rent out! 😊 Cheers!

Investment Info:

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

Purchase price: $139,000
Cash invested: $22,000

Contributors:
Brittany Kuschel

This modest 2 story duplex has us so excited to get in the investment process! Two 2 bedroom identical units with large dining and living rooms. Rented with long term tennants, but with under market rent.

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

We were interested in purchasing a duplex so we can house hack our way into real estate investing. This property only needs cosmetic rehab and a few utility updates in the future.

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

We found this deal on the MLS. It was listed for one weekend. We had a mini home inspection during the showing so we could waive inspections in our offer, which is practically required in our market. Our wonderful agent determined the seller was emotionally adverse to removing tennants prior to closing, so we leveraged that knowledge!

How did you finance this deal?

Conventional, 30 year, fixed. 15% down

How did you add value to the deal?

We will be house hacking, so the rehab will be done by us! We have a family member who is an experienced contractor who can provide guidance.

Lessons learned? Challenges?

Make sure your bank provides cashier checks and have your funds available well in advance!

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

Our agent, Brittany Kuschel, guided us through this first investment purchase. Brittany is truly professional and insightful. Her negotiations, guidance, insight, and determination closed this deal. It honestly felt like we were just along for a stress free ride! Thank you Brittany!

@Darin Reinke I've run into the same issue. Did the city specify how one would covert a duplex into a single family? I've thought about getting creative...does adding access to unit one from unit two (with a door) make it count as a single family? Would one have to get the property re-zoned? So many questions!

Erik, interesting idea, but also I tend to agree with some of the other responses that the intent may not result in the impact you wish. It may make sense to focus on projects that restore historically carbon rich and diverse ecosystems. I thought I read a statistic about the US having more forest coverage than historically typical. 

Old growth temperate forests are less and less common due to logging and development, so you could strive to purchase and maintain land with the intent to preserve an old growth forest into the future. I am not versed on returns of land like that but it may be rentable to hunters. 

I also hope to purchase land in northern MN at some point for the purpose of lifestyle and joy. Owning a Christmas tree farm is in my 5 year plan. if that interests you, let's talk! 

@Craig Hansen thanks Craig! Will do!

Hi Sami, congratulations on your new property! How did this situation shake out with the tennant? Did you have to formally evict?

Best Regards, 

Jill

Jonathan, just checking in on this situation. How did it go? Did the tennant leave after 60 days?

Hi, I am also thinking this may be something I will run into very soon. How did this work out for you? Did you need to hire an attorney or was it self directed?

Best Regards,

Jill

@Kurt Pauley it appears like it is pretty frequently disputed and reassessed based on the news I've seen. I think I saw an article a month or so ago concerning the high amount of accessory home shares being applied for. There's a constant concern for affordable and available housing in Duluth. Is it reasonable to assume that if the city is already concerned about accessory home share, the independent and limited STR permits may continue to be restricted? We shall see...

Ahh! I'm glad you learned the STR permits are so limited. I also have run into that issue, which leaves me to rely on the accessory home share permit. This allows someone to have a STR permit as long as they live on site.