Single family house hack
Investment Info:
Single-family residence buy & hold investment in Kettering.
Purchase price: $72,500
Cash invested: $15,500
2/1 single family property on a private drive in Kettering Ohio. A ton of natural light from the unique front windows. Large kitchen and bathroom. One car garage, and covered porches in front and back.
Technically my first investment, I had a live in tenant who paid to cover all expenses/mortgage, plus a little bit of cash-flow (single family house hack).
**The reason I say technically is because this is and was my primary residence. **
What made you interested in investing in this type of deal?
***Full disclosure this is my primary residence***
I knew that I wanted a place that had multiple bedrooms in order to rent out one to improve my income. I did the math, and realized that with such a small mortgage payment, even a lower rent could pay for everything plus have some income.
How did you find this deal and how did you negotiate it?
Excellent Real Estate agent, Greg Brenner, asked what I was looking for and showed me multiple properties. This was the last on his list for the day and I knew I wanted it.
How did you finance this deal?
Saved up money from standard job, 20% down from an FHA loan (due to my short credit at the time)
How did you add value to the deal?
Repaired the garage leak in roof, complete demo and then patched flat roof.
Landscaping, mostly hardscaping with rock and stone in the front and back.
What was the outcome?
--Good lessons learned in being a landlord.
--Cash flow was positive for duration of time.
Lessons learned? Challenges?
--Cash flow trumps W2 income every time
--Tenants can be the best people ever, pay on time, every time and stay clean
--You need to have a strong lease agreement, do not allow guests to start staying unless there is a specific agreement.
--Tenants can live in filth, and actually deny pest infestations that they dwell in.
-- There is always a good way to say you need to move out, for me it was, "at the end of your lease, you should find a bigger place for you two"
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chicago title did a solid job with title transfer, and made me aware of various aspects to title ownership
Greg Brenner Reality, patient but skillful Realtor.
