My First House Hack and Investment Property

10 Replies

Investment Info:

Single-family residence buy & hold investment in Wichita Falls.

Purchase price: $89,000
Cash invested: $4,492

This is a single family residence that I had previously been renting from the owner. Now, I have purchased this home and am currently house hacking with three other roommates who pay me rent which covers all of my bundle(mortgage, insurance, taxes) and I end up with $150 in cashflow. I was able to purchase through seller financing with zero down and only 4% interest.

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

I was tired of paying rent when I realized I could own the property and actually make money while I lived there.

How did you finance this deal?

Seller Financing - Zero down - 4% interest

How did you add value to the deal?

I gave the exterior a makeover and added a bathroom to the master bedroom.

What was the outcome?

Currently I am cash flowing $150 every month and according to comps in the area the property is worth $110,000.

@Nick Powell Whoot whoot this is terrrific! Congratulations! Great day doing a seller finance with 0 down and only 4% interest. This was previously place you were renting, how did you approach the owner to buy the house?

That is awesome Nick. My wife and I have been looking into REI but we had a very conservative look with the financing part i.e traditional ways (bank financing) to acquire properties but my research and your story gets me more excited to use creative financing options!

@Carlos Villalobos You are right! That is always a good feeling. To answer your question about approaching the owner. Fortunately, the previous owner was a family member so I already had a great relationship with them. Also, they had been a landlord for about 20 years so they wanted out of the game so to speak. Therefore, we came to a deal that was a win-win for both sides. Some key tips I learned and incorporated into the discussion was to be honest about my goals for the property were and to also get a better understanding of the previous owners goals. That is eventually what led to the win-win situation.

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