My first property using none of my money
Small multi-family (2-4 units) other investment in Jonesboro.
Purchase price: $130,000
Cash invested: $10,000
I am house hacking. It is a quadplex. I had to become really creative with financing. I read Brandon Turners book on investing in real estate with no or low money down and that book was really helpful to me in this investment. It talks about how financing is an art as much as it is science. I learned about a 203k loan. When I asked my lender about the 203k loan he didn't even know what it was so he referred me to another lender who knew what it was but had never used one. My quad plex needs about $20,000 in repairs and the 203k loan will pay up to 27,000 for the loans and pay for the house. I have it on a 30 year mortgage with 4% set interest rate. It is 3.5% down. I found this money by asking my buddy to max out his student loans and letting me borrow the money. This worked out because he has 3 more years of school and he does not need to pay back the loans until he graduates. I found another lender that will let me take out a HELOC loan against my quad plex once the house officially done. This is my BRRR method. I bought the house, and now I'm taking out a line of credit to pay back my buddy and im going to use the extra money as a down payment for the next property. While living in the property, im cash flowing $300 a month and this covers my expenses and mortgage note.
What made you interested in investing in this type of deal?
I am in college and needed a place to live while in college and I did not want to pay rent somewhere. I have listened to every single podcast for bigger pockets and they are they reason I was able to make this deal work out.