{"id":119770,"date":"2019-11-27T12:00:54","date_gmt":"2019-11-27T19:00:54","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=119770"},"modified":"2024-02-17T13:04:51","modified_gmt":"2024-02-17T20:04:51","slug":"best-deal-ever-show-6-using-fha-to-house-hack","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/best-deal-ever-show-6-using-fha-to-house-hack","title":{"rendered":"Best Deal Ever Show #6: Using FHA to House Hack"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You\u2019ve probably heard that when a successful real estate investor hires an accountant, it&#8217;s not long before the accountant <\/span><i><span style=\"font-weight: 400;\">also<\/span><\/i><span style=\"font-weight: 400;\"> starts investing in real estate. One glimpse of how easy it can be is all it takes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Five years ago, Ola Dantis was neither an accountant nor a real estate investor, and he wasn\u2019t even <\/span><i><span style=\"font-weight: 400;\">close<\/span><\/i><span style=\"font-weight: 400;\"> 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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Within two years, he\u2019d 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\u2019s accountant, it only took one job consulting on a multifamily syndication deal for Ola to realize it was time to switch careers.<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/hA5uKePeR-w\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">A few months<\/span><span style=\"font-weight: 400;\"> later, he and Weona purchased and moved into the bottom floor of their first investment: a 1920s two-story duplex in downtown Baltimore.\u00a0<\/span><span style=\"font-weight: 400;\">The <\/span><span style=\"font-weight: 400;\">property sat in an upscale neighborhood, but it hadn&#8217;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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ola offered $220K to the $260K asking price and landed on $240K with a new roof. They were eligible for a <a href=\"https:\/\/www.biggerpockets.com\/blog\/fha-guidelines\/\" target=\"_blank\" rel=\"noopener noreferrer\">Federal Housing Authority (FHA) loan<\/a>, 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\u2019s monthly mortgage. This deal was a triple slam\u2014live-in <a href=\"https:\/\/www.biggerpockets.com\/blog\/2014\/01\/07\/flipping-houses\/\" target=\"_blank\" rel=\"noopener noreferrer\">flip<\/a>, <a href=\"https:\/\/www.biggerpockets.com\/blog\/2013\/11\/02\/hack-housing-get-paid-live-free\/\" target=\"_blank\" rel=\"noopener noreferrer\">house hack<\/a>, and upstairs <a href=\"https:\/\/www.biggerpockets.com\/blog\/2015\/12\/15\/turnkey-real-estate\/\" target=\"_blank\" rel=\"noopener noreferrer\">turnkey<\/a>!\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The fact that he had never owned, renovated, or even sold a home before didn\u2019t slow Ola down\u2014a 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!<\/span><\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2010-06-30-introduction-to-real-estate-analysis-investing\" target=\"_blank\" rel=\"noopener noreferrer\">Introduction to Real Estate Investment Deal Analysis<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-114567 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/calculate-taxes-702x336.jpg\" alt=\"calculating-your-time\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<p><span style=\"font-weight: 400;\">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\u2014an $85K equity gain in less than a year!\u00a0<\/span><\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/the-best-real-estate-deal-ive-done-this-year\" target=\"_blank\" rel=\"noopener noreferrer\">The Best Real Estate Deal I\u2019ve Done This Year<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Ola didn\u2019t 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: <\/span><a href=\"https:\/\/www.dwellynn.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Dwellynn.com<\/span><\/a><span style=\"font-weight: 400;\">. In the <\/span><i><span style=\"font-weight: 400;\">three<\/span><\/i><span style=\"font-weight: 400;\"> years since, the deals he\u2019s sourced have amounted to over $40 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">(Oh, and he just closed on a 160-unit cash-flowing commercial property in Texas.)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All it takes is one great deal to realize the sky&#8217;s the limit! Get inspired by more stories like this on\u00a0<a href=\"https:\/\/youtu.be\/hA5uKePeR-w\" target=\"_blank\" rel=\"noopener\"><em>The Best Deal Ever Show\u00a0<\/em>with Ken Corsini on the BiggerPockets YouTube channel<\/a>! New episodes are posted every Wednesday!<\/span><\/p>\n<p><a href=\"https:\/\/www.youtube.com\/user\/BiggerPockets\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-114268\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6.jpg\" alt=\"ad-youtube-channel\" width=\"706\" height=\"125\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6.jpg 706w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6-300x53.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6-702x125.jpg 702w\" sizes=\"auto, (max-width: 706px) 100vw, 706px\" \/><\/a><\/p>\n<p><em>What&#8217;s the best deal you&#8217;ve ever heard about? Or experienced yourself?<\/em><\/p>\n<p><strong>Share in the comment section below.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ola Dantis shows us how you can go from immigrating to the U.S. with $160 in your pocket to cash flowing an amazing duplex in Baltimore by using an FHA loan.<\/p>\n","protected":false},"author":629,"featured_media":116862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7356],"tags":[],"class_list":["post-119770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-house-hacking"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/119770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/629"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=119770"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/119770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/116862"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=119770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=119770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=119770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}