Updated almost 6 years ago on .
House Hack converting to Buy&Hold rental
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $231,000
Cash invested: $4,000
0% down VA loan. Currently house hacking and planning on doing a re-fi in order to generate more cash flow when i convert to a rental in 2-3 years.
What made you interested in investing in this type of deal?
Amazon fulfillment center being built nearby. Area has one of the highest current rates of appreciation in the country. Very attractive ROI and PCF.
How did you find this deal and how did you negotiate it?
Fantastic real estate agent that owns a large local portfolio of investment properties and understands the market. Appraisal came in lower than asking and was able to negotiate a price drop.
How did you finance this deal?
VA financing through a local bank.
How did you add value to the deal?
Currently working on remodeling the property while i live in it.
What was the outcome?
Still house hacking and with a good portion of my mortgage payed for.
Lessons learned? Challenges?
Was difficult and time consuming to find a deal in my price range with a VA loan in my area because the market is hot and people seem to be willing to overpay. I learned that the VA is strict when it comes appraisals and will not lend more than what they value the property at. This became a blessing in the long run as it prevented me from being ignorant and paying too much.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would highly recommend Josh Shearer (Silver Creek Realty Group) and Andrew Fullmer (Loan officer at Willamette Valley Bank).