First deal - house hacking. What do you think?
Hi Rhode Island, and Providence BP'rs.
I found a fairly interesting way to structure my first deal and I am wondering what you think of it.
I have under contract 60
Linden street Pawtucket RI MLS1123800.
It was a forclosure listed at 169,000.
I got it under contract contingent on Rhode Island renewal program and 3.5% FHA.
Price 169,000
Offer. 157,250
(3,000 back for closing)
downpayment (20,000) Rhode Island renewal plan.
Total mortgage. 137,250
So long story short, I pay 2,000 in closing costs - and get the state of RI to give me 20,000 on a downpayment. It was listed at 169,000 and we got it under contract for 157250 with 3,000 back for closing.
It's a 3 BR, 2 BR single family w/ a partially finished basement.
One of my exit strategies since I must live in home for 5 years in order to not have to repay the 20,000 grant - is to rent out then3 brs up stairs with private bathroom, and full house access for 1,000.
I test posted an ad on Craigslist as was getting 1 person a day interested in it.
I would live in furnished basement and after 5 years and 20,000-30,000 of mortgage paid down by the renters - hopefully sell for the market value or hold for my rental portfolio I am starting.
It was hard to use the calculators for this because I was renting and living but I calculated 1400 expenses including 5capex 5% vacancy full landlord utilities and all that jazz.
Seems like it would still cash flow $100 if you could rent it out for 1600-and break even for 1500.
But I was more or less thinking of getting some instant squirt to pull out later in 5 years after sale or just in general to use for more deals.
Also wholesalers in Rhode Island I am looking for you. Looking for low value cash deals or....would consider partnering with a wholesale
Pro(20+deals) to split profits if you teach me the paperwork and systems better. My skills are on the phone sales (extremely high Level) in person sales ( high level) and taking action. Not a tire kicker. I love to close deals
Long story short I get into the property w/ only inspection money and 2,000 dollars. Plan to sell after 5 years and hoping for 20,00-50,000 pure profit.
http://m.estately.com/listings/info/60-linden-st--...
Sam