Best Deal Ever Show #6: Using FHA to House Hack

Best Deal Ever Show #6: Using FHA to House Hack

2 min read
Ken Corsini

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005.

Experience
With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.

Having been involved in thousands of transactions and having owned over 800 houses, multiple commercial and multifamily properties, and more, Ken brings a wealth of knowledge and experience to the BiggerPockets community. He has authored over 100 blogs and currently hosts the “Best Deal Ever Show” on the BiggerPockets YouTube channel. He is also the host of the popular Deal Farm Podcast.

Ken is currently writing a book in conjunction with BiggerPockets called “Profit Like the Pros,” scheduled for release in Fall 2020.

He and his wife also run Roc.Star Kids, a non-profit organization focused on the needs of children and families in the fight against childhood cancer. For more information on this very personal cause, check out their story here.

Press
In addition to HGTV and HGTV Magazine, Ken has been featured on The Today Show, People Magazine, The LA Times, Think Realty Magazine (cover), TV Insider, In Touch Weekly, Life and Style Magazine, The Wrap, The Atlanta Journal Constitution, UGA Today, US Chamber of Commerce, PopSugar, Entertainment Magazine, and a number of local periodicals.

Education
Ken has a Business Degree from the University of Georgia and a Masters Degree in Building Construction from Georgia Tech.

Accreditations
Ken is currently licensed as a general contractor (commercial) in the state of Georgia.

Follow
RedBarnHomes.com
Instagram @kencorsini
Twitter @kencorsini
Facebook

Read More

Join for free and get unlimited access, free digital downloads, and tools to analyze real estate.

You’ve probably heard that when a successful real estate investor hires an accountant, it’s not long before the accountant also starts investing in real estate. One glimpse of how easy it can be is all it takes. 

Five years ago, Ola Dantis was neither an accountant nor a real estate investor, and he wasn’t even close to having the capital most people need to start a business. He had just moved to Maryland from Nigeria with only $160 in his pocket, but he also had a Masters of Strategic Marketing and Consulting from the University of Birmingham and an endless supply of ambition. 

Within two years, he’d founded a consulting firm and was renting a comfortable luxury apartment in suburban Baltimore with his pregnant wife Weona. But just like a real estate investor’s accountant, it only took one job consulting on a multifamily syndication deal for Ola to realize it was time to switch careers.

A few months later, he and Weona purchased and moved into the bottom floor of their first investment: a 1920s two-story duplex in downtown Baltimore. The property sat in an upscale neighborhood, but it hadn’t been updated in decades. The bathrooms still had original cast iron tubs and piping, the formica kitchen countertops were hideous, and the whole thing needed a cosmetic makeover. 

Ola offered $220K to the $260K asking price and landed on $240K with a new roof. They were eligible for a Federal Housing Authority (FHA) loan, so the down payment and monthly interest were only 3.5 percent. Since the upstairs renters wanted to stay put, their rental payments would cover Ola’s monthly mortgage. This deal was a triple slam—live-in flip, house hack, and upstairs turnkey

The fact that he had never owned, renovated, or even sold a home before didn’t slow Ola down—a contractor helped him finish the first floor in only six weeks. He and Weona rented it out at $1,200, then moved upstairs to renovate again. With a newborn baby inspiring him to finish ASAP, they completed the project in four weeks!

Related: Introduction to Real Estate Investment Deal Analysis

The rehab process cost $50K total, so Ola was all-in at $290K. He and Weona had been noticing that despite everything, their income was still growing every month. Fully grasping the potential of positive cash flow, they decided to rent out the top unit and start the process all over again by purchasing another fix-and-flip down the street.

calculating-your-time

With $1,200 rent from the downstairs unit and $1,400 from up top, the combined rental income was $2,600. The mortgage was $1,000, so this meant a $1,600 monthly cash flow. Plus, a new appraisal came in at $375K—an $85K equity gain in less than a year! 

Related: The Best Real Estate Deal I’ve Done This Year

Ola didn’t start out a rich man. Grit, ambition, and a solid education led him to success as a business consultant, which led him to that first duplex, which led him to founding his multifamily investment syndication firm: Dwellynn.com. In the three years since, the deals he’s sourced have amounted to over $40 million.

(Oh, and he just closed on a 160-unit cash-flowing commercial property in Texas.)

All it takes is one great deal to realize the sky’s the limit! Get inspired by more stories like this on The Best Deal Ever Show with Ken Corsini on the BiggerPockets YouTube channel! New episodes are posted every Wednesday!

ad-youtube-channel

What’s the best deal you’ve ever heard about? Or experienced yourself?

Share in the comment section below.