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.

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

Congratulations @Lana Sheta

Appreciate the honesty about the lender, cheapest rates do not always mean the best option. Well done regardless.

What is the plan for the Stateline property?

Thanks @Dustin Allen ! The Stateline property was primarily a quality of life oriented decision. However, there's a huge basement that I'm converting to a studio apartment likely for STR and increased equity purposes.

Nicely done, Lana! I've got a similar property just north of UNR that is still slowly getting renovated as a live-in flip. In the process of buying the next one in old NW as well. Sending you a connection request; please reach out if you ever want to discuss another Reno/Northern NV deal.

Thanks @Alexander Yates ! Congrats on your live-in flip. The UNR area rents so easily, it's awesome. I'd love to talk about our market soon. I'll send you a message!