$1,200 Down House-Hack at the age of 22!
Investment Info:
Single-family residence other investment in Temple Hills.
Purchase price: $210,000
Cash invested: $1,200
House-hacked live in "flip" although I do not plan on selling the property, rehabbing it and making it rental proof and rental ready, has increased the property value. I am intentionally increasing value, so a year or two down the line I am able to HELOC the property, and use that money for the downpayment of another property.
What made you interested in investing in this type of deal?
I needed affordable housing, and first hand knowledge of purchasing a house, and dealing with tenants, contractors, realtors, and lenders.
How did you find this deal and how did you negotiate it?
My realtor signed me up for a MLS email system, I found it on there.
How did you finance this deal?
$1200 is not much haha, the grants really helped. I believe i had two grants for $5000 a piece.
How did you add value to the deal?
Turned a half bathroom in the private entrance basement into a full bath. Renovated the spare bedroom. Replaced all the baseboards. Painted the whole house. Replaced lighting in the whole house. Put in ceiling fans. Renovated both bathrooms. Upgraded the fuse panel into a breaker box. Replaced the water heater. Refinished the floors.
What was the outcome?
Living affordably, and increasing equity for a preemptive HELOC in the following years.
Lessons learned? Challenges?
Phew, where to start? I learned how to screen tenants. I learned how to negotiate with contractors. I learned a lot about the prices for jobs around the house, etc.
I also learned that if your realtor, tenant, contractor or lender is not performing at the level you want them to, do not hesitate on replacing them.
Do not believe everything a person says, have them show you rather than to blindly trust what they say.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
N/A