DPA and House Hacking!
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Elea Reyna
Investor from Greensboro, NC
posted 21 days ago
Investment Info:
Single-family residence buy & hold investment in Greensboro.
Purchase price: $205,000
Sale price: $205,000
I worked with the city's down payment assistance program, where I receive $10,000 (forgiven in 5 years) to pay for my down payment and closing costs. Also, the seller agreed to pay for $6,000 in closing costs. I used an FHA loan, with low interest rate, and purchased this house with $0 out of pocket!
The house is a 3bd 2.5ba with an ADU with a bonus room. I will be house hacking the 3 bedrooms and renting them individually! So my mortgage payment, repair and maintenance costs will be covered!
What made you interested in investing in this type of deal?
The opportunity of purchasing my first home with $0 out of pocket.
How did you find this deal and how did you negotiate it?
Through the MLS. I just wanted to make sure I had 3 bedrooms to rent and 1 extra space for myself.
How did you finance this deal?
With a DPA, and a FHA loan.
How did you add value to the deal?
I will be adding a kitchenette and bathroom to the ADU, turning into a small apartment!
What was the outcome?
A free house and a free ADU!
Lessons learned? Challenges?
Persistence is key. In this hot market, houses were sold the day that they were getting posted on the MLS. I made offers to about 10 other houses before getting this house.
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