Investment Info:
Small multi-family (2-4 units) buy & hold investment in St Louis Park.
Purchase price: $312,500
Cash invested: $37,775
Cash flowing house hack. Purchased as side by side 2/1 and turned one unit into a 3/1 to make this property cash flow while living in it.
What made you interested in investing in this type of deal?
The desire to live rent-free and eventually become financially independent and retire early (or have the option to retire early). I wanted to move out from living with my parents after I finished paying off my student loan debt but still wanted to be able to save a significant portion of my income. House hacking was the channel that allowed me to do this.
How did you find this deal and how did you negotiate it?
Found on the MLS. Negotiated through my realtor. The offer was accepted $10k below list price, further negotiated down it after the inspection.
How did you finance this deal?
Conventional 5% down lender-paid PMI. Paid for the renovation in cash.
How did you add value to the deal?
Added a bedroom and family room by finishing the basement in 1 unit. I acted as the GC myself and subcontracted out the trades requiring licensure.
What was the outcome?
This allowed me to cash flow while living in the property when it is fully rented out. I am now able to save up for my next property.
Lessons learned? Challenges?
Deal with water problems prior to finishing the basement. The week after I finished the basement and had a renter move in the basement flooded. I had to rip up the brand new floor and trim and address it.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
N/A.
