Updated over 3 years ago on . Most recent reply
First House Hack Investment at 23
Investment Info:
Single-family residence other investment.
Purchase price: $138,000
Cash invested: $5,000
Sale price: $168,000
Used an FHA loan on a single family and rented out the spare bedroom. Cash flowed $150-$200 as a rental when I moved out before selling. Owned the property between July 2020- March 2022
What made you interested in investing in this type of deal?
It dropped my monthly housing costs from $700-ish a month to $150-$200
How did you find this deal and how did you negotiate it?
Zillow. Offered 3K below asking and agent got my offer accepted. Property was under contract within a week of being listed.
How did you finance this deal?
FHA 3.5% Down
How did you add value to the deal?
None really.
What was the outcome?
I sold the property 20 months later. The house appreciated 28K in less than 2 years. It was a good result, but that was due to luck and not my skill as an investor.
Lessons learned? Challenges?
I will definitely do more analysis for properties moving forward. On this first deal, this was all I did: "Location is good, I'd pay to live here, let's jump on this fast."
An escrow analysis blindsided me and raised my mortgage payment 30% without me realizing. That prompted my decision to sell and something I'll look out for in future deals.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Angela Hurley