Investment Info:

Single-family residence other investment in Ogden.

Purchase price: $230,000
Cash invested: $10,000

My first investment property I am house hacking in order to get my toes wet in REI. I rent the 3 bedrooms upstairs and I am finishing the basement while I live down there.

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

An interest in early retirement led to me finding ways to save money which led to me learning about house hacking.

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

A coworker was going through a divorce and was simply trying to get rid of the property as fast and easy as possible. I looked at the house, ran the numbers, and submitted the offer that same day.

How did you finance this deal?

VA Loan. No money down and I could use that money saved to fund the rehab/creating the additional unit in the basement.

How did you add value to the deal?

The 3 bedrooms/living area upstairs needed some basic cosmetic repair like wall/cabinet paint, new trim, new doors, etc. which I took 2 weeks off from work to do myself. I rent those bedrooms for a total of $1600/mont. The downstairs, where I am living, is unfinished and I am in the process of adding a 3/4 bathroom, a small kitchenette, and a bedroom for myself that I will eventually rent out as a separate unit once I have saved enough money to repeat this in my next property.

What was the outcome?

The income from my three tenants has me cashflowing about $150 and I am living for free.

Lessons learned? Challenges?

Patience paid off. I was prepared to look at and make an offer on every house in Utah until I landed one where the numbers worked.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Peter Pearson is an investor/real estate agent who started 5 years ago in a very similar way to how I am starting out now. He introduced me to biggerpockets and has walked me through the process of finding my first deal.