Single-family residence buy & hold investment.
Purchase price: $174,000
Cash invested: $18,000
I purchased this property as my 1st real estate deal and house hack with a FHA loan. I currently live in the house and list my the additional bedrooms and bathroom on Airbnb, VRBO & Booking.com to help offset the expenses. Thus my property brings anywhere between $1,000 to $2,000 each month allowing me to actually make money! While I am living here I plan to make value add renovations such as add a bedroom and a bathroom in the basement to increase the equity $20k - $25K as well as increasing the potential long term rental income. I am also updating the kitchen, bathroom, landscaping and exterior of the home to make it more appealing and add value prior to placing long term tenants and refinance out of the property.
What made you interested in investing in this type of deal?
Listening and learning around the BP community. House hacking is a great way to get into real estate by lowering my monthly expenses and allow me to slowly renovate the property over the course of one year.
How did you find this deal and how did you negotiate it?
I found this deal via my local agent Andrew Adam. We negotiated it down from $179k to $174k.
How did you finance this deal?
Financed this deal via a 3.5% down FHA loan.
How did you add value to the deal?
I plan to add value to the property by adding an additional bedroom and bathroom in the basement making it a 5/bed 3/bathroom home. Updating one of the existing bedrooms, kitchen counters, kitchen appliances, water heater, and updating the curb appeal with new landscaping, DIY shutters, staining/painting the existing fence and decks.
What was the outcome?
Currently in process of completing the renovations
Lessons learned? Challenges?
Spend a lot of time up front to establish processes and system for Airbnbing your property ensure the guests are not going to damage/steal items from your home.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would highly recommend working with Andrew Adam, who is also a local REI. The lender I choose to go with is Plains Commerce Bank who were incredibly helpful throughout the loan process!
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