Getting started in Real Estate with a House Hack
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $343,000
Cash invested: $68,600
House Hack that I kept and rented out after I moved.
What made you interested in investing in this type of deal?
I was single, with money for a down payment, and needed a place to live. I made a pack with myself to never pay rent in my life so the idea of buying a house and renting the rooms out to my friends was the obvious financial decision.
Once I outgrew the house, I knew I wanted to keep it and rent it out. Having put 20% down for the initial purchase, it was easy to make it cash flow. Prior to moving out, I took out a HELOC on it which funded my next real estate investment.
How did you find this deal and how did you negotiate it?
It was new construction listed on the MLS. Since I was a newbie, I purchased it brand new with no negotiations, outside of having the builder include higher-end finishes for free.
How did you finance this deal?
Conventional owner occupied bank loan. 20% down.
How did you add value to the deal?
Holding it for 5 years, I achieved $150,000 in appreciation. Got lucky with the timing of the market.
What was the outcome?
I still hold this rental and continue to use the HELOC for funding other real estate projects.
Lessons learned? Challenges?
The best time to buy real estate was yesterday.
