All Forum Posts by: Micah Carter

Investment Info:

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

Purchase price: $148,000
Cash invested: $32,000

My wife & I bought a duplex for our first house hack!! we live in the upstairs unit and just signed a lease for the basement apartment. Both units have 2 BR, kitchen, laundry room, and are about 1000 square feet. We found the deal on Zillow and negotiated our way into a good deal. We put $10k into the renovations and plan to refinance in August. (BRRRR)

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

We didn't want a big monthly mortgage payment. This was a perfect deal for us as we are working towards being financially independent through real estate. We knew what rent would be, know it needed light renovations, had the drive to complete renovations, knew the numbers and went for it!

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

Through Zillow. I have automatic updates for a certain price range set up. This property hit my email inbox, I took a look at the pictures, knew the location and made an offer on it without walking the property. We later had a home inspection along with other inspections and negotiated it down to a price that worked for us using the inspections for leverage.

How did you finance this deal?

Conventional financing with a 15% downpayment and another $10k out of pocket for the renovations.

How did you add value to the deal?

New retaining wall, fixed deck, new hardwood flooring in bedrooms, new vinyl flooring in bathrooms, updated downstairs unit bathroom, painted entire house and made a few other minor adjustments.

What was the outcome?

We are planning to refinance after 6 months of the initial purchase date which would be in late July. We hope to refinance and pull our cash out to find another property if our numbers were accurate.

Lessons learned? Challenges?

The whole process is challenging but worth it. It's easy to second guess yourself throughout the deal. We went back and forth whether it was a good deal or if we could afford to buy the house and how we would renovate. We spent countless hours on youtube, networked with agents, contractors and friends and pushed through. The renovations moved slower than I thought, I think in large part because it was first attempt and the learning curve is steep but very achievable.

@Trent Chance Congrats man! FHA might be a little tricky with this one.. no heat source in the bottom unit, chipped paint on the siding, and deck needs some work.

@Lien Vuong Great advice! I’m going to look into this tomorrow. Do you know which department would have this info?

@Mark Huneycutt

I’m a little bit west of Asheville but love that area. I think I got it figured out with a local lender but appreciate the info

@Cassi Justiz Learning that the hard way but hey, now I know what I need for the next one. Would love to do an FHA but the paint is chipping on the outside of the home and the deck probably needs to be replaced.

@Michael Henry Finding our the hard way!! Haha.. I had heard it all over bigger pockets and assumed it was still a possibility. Looks like the 15% down is the best I’m able to get on any 2-4 units.

@David Kelly just looked into the homepossible program and I wouldn’t be eligible for it. Thanks for your input though!

@Chris Mason Gotcha. Didn’t realize that window had closed. Unfortunately/Fortunately I’m over the income limit for the Homepossible program. Looks like 15% down is the best I’m able to get after calling around. Thanks for your input!

Have a duplex under contract. Going to live in the top unit and rent the bottom unit out. Thought I could get a conventional loan for 5% down. Lenders are asking for 15-20 percent down. Any advice???

Have a duplex under contract. Moving into the top unit and renting the bottom unit out. Currently working with a credit union but appraiser went out.. called it a duplex instead of a SFR because the basement isn't accessible from the main floor. They are now requiring 20% down. Calling around to different lenders now... I have heard a lot of people talk about conventional financing with 5% down on a primary residence with 1-4 units.. any recommendations??? Help!!!