All Forum Posts by: Tucker Mortier

Investment Info:

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

Purchase price: $247,900
Cash invested: $19,000

Closed on my 3rd house hack in January 2024 and wow this one has been quite the property.  

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

Great location right under Como Lake, a minorly distressed asset I was able to put sweat equity into to bump up the rents. 

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

Found this deal through the MLS- it was listed at $249,000. The property was sitting on the market for about 30 days due to the condition, seasonality (it was December), and smaller size of the property (about 1300 sqft). Settled at $247,900, 3% closing cost credits, and the seller also put in about $3,000 for repairs. Definitely a win

How did you finance this deal?

5% down conventional financing. I was initially going to put down 10%-15% but the new lending requirements only required 5% down- allowing me to keep additional capital for reserves.

How did you add value to the deal?

Increasing rents substantially by rehabbing.  I chose to do a very basic rehab to the lower unit to try to get a tenant in as quickly as possible and turned out to bite me in the end.  Without fully rehabbing a unit it is less likely to draw qualified tenants.  

What was the outcome?

Choosing to rent to an unqualified tenant due to early move-in has resulted in nonpayment of rent and going through the eviction process which I will make a future post about.  It has been a great learning experience!

Lessons learned? Challenges?

There are other challenges that come with unqualified tenants in addition to nonpayment of rent including unauthorized guests staying in the property, broken windows, and other issues which I'll dive deeper into in a future post!  The biggest lesson learned is to stick to your crystal clear criteria, don't rush it, ensure the tenant is qualified, and your chances of success are large!

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

Lender- Tim Swierczek. Agent- Matt Bartholomew. Both Rockstars.

Connect with me on Bigger Pockets!

Investment Info:

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

Purchase price: $267,000
Cash invested: $40,000
Sale price: $267,000

Contributors:
Tim Swierczek

Closed on my 2nd deal! I acquired this deal 12 months after purchasing my first house hack- it's another 4/2 duplex. I was able to save enough for the down payment by lowering my housing expense to ~$500/mo through the first house hack and living frugally.
This property is already rehabbed and ready to go, I already rented the top portion out for $1,300 per month. This will make a great buy-and-hold investment and will be a great refinance opportunity with built-in equity when rates go down

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

This property is already rehabbed and ready to go

How did you finance this deal?

This deal was purchased by the previous owners with the intention to flip it and make a quick sale. The previous owners listed this originally for $300k and with rising interest rates it sat on the market for a few months. I was able to purchase it for $267k with 6% seller paid closing & 15% DP conventional loan through my lender Tim Swierczek and agent Matt Bartholomew.

Investment Info:

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

Purchase price: $267,000
Cash invested: $40,000
Sale price: $267,000

Contributors:
Tim Swierczek

Closed on my 2nd deal! I acquired this deal 12 months after purchasing my first house hack- it's another 4/2 duplex. I was able to save enough for the down payment by lowering my housing expense to ~$500/mo through the first house hack and living frugally.
This property is already rehabbed and ready to go, I already rented the top portion out for $1,300 per month. This will make a great buy-and-hold investment and will be a great refinance opportunity with built-in equity when rates go down.

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

This property is already rehabbed and ready to go

How did you finance this deal?

This deal was purchased by the previous owners with the intention to flip it and make a quick sale. The previous owners listed this originally for $300k and with rising interest rates it sat on the market for a few months. I was able to purchase it for $267k with 6% seller paid closing & 15% DP conventional loan through my lender Tim Swierczek and agent Matt Bartholomew.

Investment Info:

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

Purchase price: $267,000
Cash invested: $40,000
Sale price: $267,000

Contributors:
Tim Swierczek

Closed on my 2nd deal! I acquired this deal 12 months after purchasing my first house hack- it's another 4/2 duplex. I was able to save enough for the down payment by lowering my housing expense to ~$500/mo through the first house hack and living frugally.

This deal was purchased by the previous owners with the intention to flip it and make a quick sale. The previous owners listed this originally for $300k and with rising interest rates it sat on the market for a few months. I was able to purchase it for $267k with 6% seller paid closing & 15% DP conventional loan through my lender Tim Swierczek and agent Matt Bartholomew. This property is already rehabbed and ready to go, I already rented the top portion out for $1,300 per month. This will make a great buy and hold investment and will be a great refinance opportunity with built-in equity when rates go down. Now that I don't have to rehab this place like I did the last one I will have an awesome opportunity to dive deeper into other parts of real estate during 2023.

Investment Info:

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

Purchase price: $343,500
Cash invested: $36,000

First deal! Closed on my first duplex house hack in Windom, Minneapolis in January 2022! Seller covered closing costs. Was able to get into this duplex with awesome terms to help set me up well for the next one!

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

The financial freedom that comes with buy & hold investments. Very stable area in South Minneapolis, 2 beds 1 bath on each side.

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

Found this deal with my agent Matt Bartholomew when it was first listed on the MLS. Waited about 30 days until the seller dropped the price by $20k. Immediately submitted an offer which the seller accepted the same day.

How did you finance this deal?

10% down conventional financing. Was initially going to go FHA but 10% ended up being a much better solution for me. My lender Tim Swierczek was an absolute rockstar.

How did you add value to the deal?

Increasing rents substantially by rehabbing one of the sides. Unfinished basements are holding future value.

What was the outcome?

I will be living in & rehabbing one side and have already rented the gleaming side out to creditworthy great people for $1,550! After satisfying the loan requirements of owner-occupant and rehabbing I will be moving onto a 4-plex!

Lessons learned? Challenges?

Buying this property while living in CO was a challenge. The biggest lesson learned is to stick to your crystal clear criteria, don't rush it, and your chances of success are large!

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

YES! Lender- Tim Swierczek. Agent- Matt Bartholomew. Both Rockstars.

Connect with me on Bigger Pockets!

Thank you for the advice!

@LeAnn Riley I was thinking the same, great opportunity just to help someone out. Thank you!

@Tim Swierczek great idea to talk with the tenants!

Does anyone have experience with Rent Help MN? I've been speaking with an older lady whose tenants owe over $25,000 in rent.  If I solve this problem she will sell me her duplex for cheap.  SOS!

Congratulations!! Was total capital the primary factor of going with a condo over a SFR? Or were there other factors in play for your first purchase? Regardless- nice!!