Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $447,000
Cash invested: $75,000
House Hack Triplex 0.5 miles from beach in Myrtle Beach, SC. Me, my wife, and our dog are living in one unit and renting out the other two.
What made you interested in investing in this type of deal?
We were looking to house hack in a property that would hold good long-term value, 3 or 4 units in a specific part of town, built after 1990, 2-3 bedrooms in each unit, that would decrease our cost of living by at least $1k.
How did you find this deal and how did you negotiate it?
Found deal on MLS. There were multiple bidders. We knew our top number, so we used an Acceleration clause of $2,001 up to our top number.
How did you finance this deal?
conventional loan, private money (family member) provided down payment as a "gift fund" which we separately negotiated lending terms.
How did you add value to the deal?
renovated our unit and one of the other units (after tenant moved out). 2nd tenant renewed lease.
What was the outcome?
After all operating expenses (including paying investor interest payments monthly), we are making $40 monthly. We were paying $1300 monthly at our last place, so this is essentially cashflowing us $1340 monthly. We are self-managing.
Lessons learned? Challenges?
1) Taking action is scary. But if our homework has been done, it's worth the step of faith
2) worse case scenarios aren't as bad as they seem
3) Don't pay contractors by the hour...just don't smh
4) having a partner that compliments you is a game changer
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
- Craig Memory (best real estate agent in Myrtle Beach)
- Ben Kyle of NeoHome Loans (our lending that worked with our unique situation)