All Forum Posts by: Tyler Halstead

Investment Info:

Condo buy & hold investment.

Purchase price: $192,500
Cash invested: $25,000

This "condex" is a shared side-by-side duplex in the north end of Manchester. Each unit has 2 bedrooms, 1 bathroom, with about 1,000 square feet not including the unfinished basement. There are no HOA fees for the property (which is in a 2 party condominium association) and water/sewer/master insurance are split between both owners. The property is located in a cul-de-sac directly beside a duplex that I purchased in 2020.

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

I've already invested in the neighborhood and really like the class B area (low vacancy rate, close to major highways, and near large employers). I believe that this neighborhood will continue to go up in value, and wanted to double down during an uncertain time with high inflation and fears of interest rates rising. I typically look for multi-family properties - but since this was located next door and I knew the other owner, I felt confident in moving forward with the condo deal.

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

Off-market, word of mouth referral and I negotiated directly with the seller for $7,500 under what she would've listed it. I also secured a right of first refusal agreement with the other owner in the association, allowing me the first opportunity to purchase once he decides to sell (currently rented to a family member of his).

How did you finance this deal?

Traditional conventional homeowner loan with 5% down at 3.375% rate. Prior to any rehab on the property, the assessor valued the property at $37,500 higher than what I paid.

How did you add value to the deal?

We have currently repainted, added LVP and LVT floors to the kitchen and bath respectively, replaced the furnace, and updated wiring, outlets, and fixtures throughout.

What was the outcome?

Finishing up the rehab so we can move into this unit, allowing us to rent the entire duplex next door. After the house-hacked unit is rented out, we should cashflow $500-$800 per month after expenses.

Lessons learned? Challenges?

Always anticipate the worst to happen. I priced in a major capital expenditure with my offer price, but did not anticipate for that cost on day 1 of ownership. This $5,500 cost was necessary -- and even though it bit into my immediate profits - since I plan to hold the property for a long time, it was going to have to be done at some point!

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

My loan officer and title company were excellent to work with - highly recommend Megan Pepper and Barristers Title and Closing (both located in greater Manchester area) for their service! Both were used in each of my real estate transactions (now up to 3 units) and I couldn't be happier with their service and expertise.

Investment Info:

Condo buy & hold investment.

Purchase price: $192,500
Cash invested: $25,000

I purchased my first off-market deal without using any real estate agents, allowing me purchase below market value and purchase more real estate in a tightly contested market.

This "condex" is a shared side-by-side duplex in the north end of Manchester. Each unit has 2 bedrooms, 1 bathroom, with about 1,000 square feet not including the unfinished basement. There are no HOA fees for the property (which is in a 2 party condominium association) and water/sewer/master insurance are split between both owners. The property is located in a cul-de-sac directly beside a duplex that I purchased in 2020.

After finding the deal off-market, I was able to get the property under contract $7,500 below her asking - and secured a right of first refusal agreement with the other owner in the association, allowing me the first opportunity to purchase once he decides to sell. Prior to any rehab on the property, the assessor valued the property at $37,500 higher than what I paid. We have currently repainted, added LVP and LVT floors to the kitchen and bath respectively, replaced the furnace, and updated wiring, outlets, and fixtures throughout.

We purchased this deal using a 5% conventional loan 30 year fixed at 3.375% in January of 2022. We plan to live in the property for at least one year, while managing the duplex next door that should generate at least $500-800 of cash flow monthly once fully rented (We house-hacked one unit since October 2020). Once the other owner decides he wants to sell, we plan to purchase and own 4 units directly next to each other while still acquiring other properties along the way.

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

I've already invested in that neighborhood, really like the area and class B type of tenants, and wanted to double down during an uncertain time with inflation.

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

Off-market, word of mouth referral and I negotiated directly with the seller for $7,500 under what she would've listed it.

How did you finance this deal?

Traditional conventional homeowner loan with 5% down at 3.375% rate.

How did you add value to the deal?

New furnace, repainted entire house, new flooring, updated fixtures

What was the outcome?

Finishing up the rehab so we can move into this unit, allowing us to rent the entire duplex next door.

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

My loan officer and title company were excellent to work with - highly recommend Megan Pepper and Barristers Title for their service!

@Ryan Weiss That's awesome that you're in Manch too! Since it's a duplex, I still pay $800 a month to cover the other half of the PITI & expenses - but I ran this report as a conservative analysis after I move out (and without raising rent)!

I used 5% for all three expenses (vacancy, capex) and did not elect property management fees as I am self managing.

Thanks @Patrick Flynn! I am currently living in the property but looking forward to reaping some true cash flow once I move, rent it out, and find the next one!

@Flavio Zanetti Thank you! And yes its crazy. Since purchasing on 10/1/21 for 331, average duplex prices in Manchester with approx. 1000-1200sf per unit are nearing 350-360! Wild numbers!

@Jeremy Wirths Thank you Jeremy. I’m new to the forums but my other post has the property analysis for when I move out and on to my next duplex!

@Cody Barna Thank you! Yes the seller had at least 5 other offers on the table. One lesson I learned was it’s not always just about the money - but the other goals the seller is trying to accomplish. Good to see you again man, we both were former Hooksett MB staff! 

Investment Info:

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

Purchase price: $331,500
Cash invested: $15,000

Side-by-side duplex in cul-de-sac neighborhood in North End of Manchester. Walking distance to one of NH's largest employers - Southern New Hampshire University.

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

House hacking by Brandon Turner, Scott Trench, Graham Stephan and the BP podcasts (OG, Rookie, & Money) and books.

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

MLS in a very hot market. Found it and within 1 hour of it posted, I had contacted my agent to set up a viewing. During discussion with the selling agent, she mentioned that her brother would be staying in the property and would only sell to someone who would keep them in place. With the help of my real estate attorney, we drafted a lease with rent just below market value and were able to go under contract.

How did you finance this deal?

I used a mortgage broker who helped me secure an 2.5% interest FHA loan with 3.5% down.

How did you add value to the deal?

Renovated the flooring upstairs (found beautiful hardwoods under the old carpet and sanded/poly'd), painted, updated bathroom flooring and fixtures, and currently finishing the basement to add extra livable square footage to the property.

What was the outcome?

I am currently living in the property now, using the rental income to cover most of the mortgage payment.

Lessons learned? Challenges?

I learned a lot about the entire purchase process, as this was my first ever home purchase. I've learned many skills in doing light renovations and dealing with tenants.

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

I used a great team of Barry Cogan (agent), Megan Pepper (mortgage), and Laura Carlier (Cronin, Bisson and Zalinsky) all located in southern New Hampshire.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This is my first house-hack (and post on the BP forums) in the Greater Boston Area, located in the largest city in New Hampshire - Manchester. Located in the North End in a very family-friendly neighborhood and walking distance to Southern New Hampshire University, it has  a pool of good tenants needing housing. As this is my first deal, I ran my numbers as it would be fully rented. I am currently paying $842/mo after PITI on the FHA mortgage - which is $2,042 including MIP. 

When I heard Dion Mcneely on the podcast, I really felt my goals aligned with how he looks for small multi-family: side-by-side, yard space, and making a smart deal with the inherited tenants. I plan to put the $5000 from my repair costs to make necessary renovations to the other side. I'm really happy that I've gotten started, and even though it isn't going to get me rich, it is a step in the right direction. I plan to run a tighter analysis when I can save some more capital for the next one.

Tyler, Manchester NH