This House Hack Success Story is a twofer! I am highlighting @Kevin Main first 2 House Hacks. What I love most about these two properties is how Kevin leveraged the power of the Bank of America Grant Program. ($17,500 in downpayment assistance and no PMI) Shoot my a PM if you would like to know more about the BOA Grant Program.

Kevin was able to purchase $947,000 worth of real estate (not including any of the crazy appreciation we have seen over the past few years) with a total combined investment of only $30,000. That is really leveraging debt in your favor

HOUSE HACK #1

Investment Info

Half Duplex SFH that has been converted into an over/under duplex in Southeast Denver (Westwood). Purchased in July of 2020

Purchase Price:

$367,500

Cash Invested:

$6,180

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

Kevin has been interested in real estate investing for a while as he had seen a couple friends be successful at it as well. For a long time he assumed he didn't have the money to buy a house, but the more research he did about different options, the more realistic it felt. House hacking is a great way to get your foot in the door with REI.

How did you find the deal and did you or the agent need to do any negotiating?

The deal came from the MLS. There were some small negotiations on purchase price and repairs, but nothing too serious.

Did you work with any real estate professionals?

Lauren Valinoti with Envision Advisors

How did you finance the deal?

This is definitely the most amazing part. As part of a Bank of America program I was able to purchase the house using a conventional loan with 5% down. As part of the deal, I received a $10,000 down payment grant, $7,500 towards closing costs, and even with 5% there is no PMI! 3.25%, 30 year fixed.

Did you add any value?

As of now, Kevin has not done any value add projects. This is something that will be tackled in the near future.

What was the outcome?

Kevin moved out of the property in October of 2021 and it is now fully rented. The property is doing well and aside from some larger cap ex projects that will be needed in the near future it is performing well (financially)

Lessons learned? Challenges?

This was a great learning experience. It was his first time being a landlord and it happened to be during the start of a pandemic with tenants that were struggling to make rent...which was not disclosed during the selling process. He also found a roach problem that was not flagged in the inspection, so that has been an ongoing battle.

HOUSE HACK #2

Investment Info:

Single Family Home converted into an over/under duplex. Purchased October 2021

Purchase Price: $579,000

Cash Invested: $23,942

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

Kevin learned that he could use the Bank of America program for a second time. Once you have 2 mortgages under your name, you are unable to use the program. Property must also be your primary residence

How did you find the deal and did you or the agent need to do any negotiating?

Another MLS deal. Minor negotiations.

Did you work with any real estate professionals?

Lauren Valinoti with Envision Advisors

How did you finance the deal?

Bank of America Grant Program. 5%down, 2.125% interest rate (that is not a type-o), 30 year fix. No PMI

Did you add any value?

The property had been recently renovated before purchasing. The only addition made was replacing a chain link fence in the back with a nicer wood fence.

What was the outcome?

Kevin currently has the top unit rented and lives in the bottom unit. When it is all said and done paying about $900/ month.

Lessons learned? Challenges?

After having 1 house hack under his belt, Kevin was much more confident going into house hack #2.

Nice work Kevin!

Picture below is of house hack #2