First Investment - House Hack

[Ben Rosenblum]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $472,000
Cash invested: $23,600

House Hack - 5 bedrooms, 4 bath, 3200 sqft plus 1400 sqft finished basement

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

I wanted to set up a situation where I could live for free/cashflow while building equity in my first home. I could then save up to purchase future investment properties after a year or two. I'm not married which makes this move simpler for me and living with roommates is something I don't mind so the idea of House Hacking made sense for my goals.

How did you find this deal and how did you negotiate it?

Found the deal through Zillow. I made an offer 10k under asking. The seller claimed they had an offer (that came in the day after me) which was better. I really liked this property so put in an offer 5k over asking with an escalation clause 2k above my competitor to 15k over asking. It turns out the offer was real and they too made an escalatory offer similar to mine, but came up a few thousand short.

How did you finance this deal?

Conventional loan, 5% out of pocket with 15% gift from family to eliminate PMI.