Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

11
Posts
16
Votes
Lana Sheta
16
Votes |
11
Posts

First House-Hack at 23, SFR near university, 332% net worth ROI

Lana Sheta
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $260,000
Cash invested: $10,000

I bought a 4 bed/2 bath SFR walking distance to the University of Nevada, Reno, for $260,000 in 2019. I used a 3% down loan (HomeReady) and seller paid closing costs + 75% of the cost of a new roof. Rents total $2875, for a positive monthly cashflow of $1,100 before reserves.

What made you interested in investing in this type of deal?

I had just graduated from the university next door and I knew the area well. I also knew how to market room rentals to students, since I had just been one. I was tired of renting and had heard about how house-hacking can totally change your financial status and enable financial freedom, so I set out to find a house-hack.

How did you find this deal and how did you negotiate it?

I found the house on the MLS. My real estate agent did a good job of finding comps, so we put in an offer for $5k below list price and seller paid closing costs. I offered a quick close, not contingent on selling any other property. During the inspections, it came back that the roof needed to be replaced. I shopped for ~5 quotes and gave the sellers the median quote (12K). They agreed to leave 6K in an escrow holdback account.

How did you finance this deal?

I financed this deal through a 3% down HomeReady conventional loan. I used CIT bank, an online bank with the lowest rates, to fund the loan. They were a nightmare to deal with and jeopardized the deal several times.

How did you add value to the deal?

I replaced the roof (8K total through Lowes, seller paid 6k, I used 0% interest financing to pay for the rest). I also added a door between the backyard and the common area (since the backyard door was in one of the bedrooms). Repainted most of the house from a dingy green, and replaced the floor in two rooms.

What was the outcome?

I'm still holding the property. I lived in it for a year and then bought a property on the Nevada side of South Lake Tahoe. It's rented out to students with long leases. So far, it's been one of the best financial decisions that I've made.

Most Popular Reply

User Stats

271
Posts
259
Votes
Jim Kittridge
  • Rental Property Investor
  • Charlotte, NC
259
Votes |
271
Posts
Jim Kittridge
  • Rental Property Investor
  • Charlotte, NC
Replied

Congrats. That is a fantastic first deal @Lana Sheta.

Loading replies...