Little by little - one step at a time house hacking

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Age 23 - bought a duplex for 210,000. Put 10% down with a conventional loan. Monthly payments at $1200/mo. Lived in the small unit and rented the other for $950 (raised to $1050 3 yrs later).

Age 25 - brought in two partners and bought another duplex, this one for $180,000. My share is 50%. Monthly payments around $1000 and total rents around $1750. We put 25% down on that one.

Age 26 - Used an FHA mortgage to buy a single family 2 bedroom home. Also purchased the build able lot next door. Put 5% down on a total cost of 170,000. Spent about 20k on the rehab. Rents for $1365 and monthly payments are just under $1200. This one is killing me with the PMI/MPI, but the real money comes when I build a new home on the lot and sell for $325,000.

Age 28 - Banks wont lend to me anymore (debt to income ratio no good) so in my wife's name bought another 2br single family for 115,000. Put 20% down and did 25k worth of renovations. Basically renovated the whole house. We live there and monthly payment is around $700. This allowed us to move out of the first duplex, so now both units there are rented for a total of $2100. That duplex now pays for the mortgage on the new home and then some extra.

We are both teachers so I am able to do these rehabs in my summers off while still collecting checks from school. With the rental income I can easily save over 1000 every month and use that for the next project. Eventually I would like to get out of teaching and do this full time.

Developed a relationship with some cash investors this year. Found them two properties so far. When they get one that I find them, I get 5% equity for my services. I am also paid 8% of the rents in exchange for managing it. Hopefully I will find them a good flip opportunity soon and start seeing some real money from it. Add it to the pot and save up for the next deal of my own!

Congratulations that is amazing :)

You are on track for sure fire success!!! You sound like us. We got started turning our personal properties into rentals when we were transferred (active duty military). At the same  we lived off one income and invested the other in pure rentals. We have also started buying the houses in one person name at a time, to make the mortgages and debt to equity ratios go further! 

Fixing up is a great way to add value. My husband gutting our first home :)

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