Updated about 3 years ago on .
First Investment Property
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $145,000
Cash invested: $74,750
Bought this as primary residence with ~$27K out of pocket ($8K in closing costs & down payment and $19K in fixing the property) and decided to house hack it since day 1; a year later we moved out and completed a $48K renovation project which turned the property from 3bed/2bth to 5bed/3bath. Since we're renting each room individually, we're cashflowing more than usual.
What made you interested in investing in this type of deal?
We knew plenty of folks in South Atlanta are always looking to rent a room.
How did you finance this deal?
To purchase the property, conventional loan ($8,200 for closing costs and 3% down payment), we then paid $19K cash to fix the property. Then a year later, we added 2 rooms and a full bathroom for $48K using a personal loan with a term of 5 years.
How did you add value to the deal?
$48K renovation project where we added 2 bedrooms and a full bathroom.
What was the outcome?
Before the $48K renovation, property was cashflowing ~ $600 a month, now it's cashflowing ~$1,000 a month and value of property increased from 145,000 (purchase price in 2021) to $220,000 (re-appraised in 2023).