All Forum Posts by: Joe Rodriguez

Investment Info:

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

Purchase price: $400,000
Cash invested: $30,000
Sale price: $605,000

I purchased a 2 family property in Malden in 2015. I house hacked, living in one unit and renting out the 2nd unit. I renovated my unit while living there and kept the existing tenants in the other unit. After 3 years, with the increase in value, I decided it was a great time to sell. The tenants moved out so I renovated that unit and then sold the property.

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

I was able to house hack using an FHA loan with a 3.5% down payment.

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

I found it on MLS being a real estate agent. It had been on the market for about 30 days so I negotiated the purchase price and closing costs.

How did you finance this deal?

I financed this deal using an FHA 3.5% down payment loan

How did you add value to the deal?

I upgraded the kitchens, bathrooms, and installed new flooring and painting throughout.

What was the outcome?

I sold the property after 3 years with a significant profit.

Lessons learned? Challenges?

Capital gains. Do your research. I may have thought about using a 1031 exchange but I also knew I wanted to focus on 3+ unit properties so selling this property allowed me to reinvest in a larger property.

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

I represented myself as the real estate agent. My lender is John Folino with The Mortgage Network.