First House Hack Attempt
Investment Info:
Single-family residence buy & hold investment in North Bergen.
Purchase price: $389,000
The property is a bit unique on regards to its layout, but it ultimately has 3 bedrooms and 2 baths. I live in one room and rent the other two out. My rental income contributes 60% of my monthly expenses.
What made you interested in investing in this type of deal?
I did not want to rent anymore but still wanted to live in the same area. This property was in my price range and I saw potential for growth because of the size of the existing garage.
How did you find this deal and how did you negotiate it?
I found it on Zillow and used a real estate agent to see the property.
How did you finance this deal?
I have a conventional 30 year fixed rate loan.
How did you add value to the deal?
I would like to add an additional bathroom, 2 bedrooms, and possibly a small kitchen in the garage to convert it into a mother/daughter style home. I will then rent out an additional 2 bedrooms while still living there.
What was the outcome?
We shall see!!!
Lessons learned? Challenges?
I bought the property using my emotions. I let my desire to buy and stop renting blind me from the numbers... because they clearly do not make for a good investment. I am now trying to figure out how to turn it into one.
