Got lucky and stumbled into house hacking!
Investment Info:
Single-family residence buy & hold investment in Bloomington.
Purchase price: $265,000
Cash invested: $7,500
House hack with a partner after college graduation and renting out the remaining rooms.
What made you interested in investing in this type of deal?
Rent for apartments was so high, so my partner and I decided it would be best to buy a home and gain equity from it. If our friends lived with us it would be an added bonus.
How did you find this deal and how did you negotiate it?
We found the deal through a realtor. The home was listed on the MLS.
How did you finance this deal?
FHA financing through a lender in my city.
How did you add value to the deal?
The best part of going in on this partnership is that neither of us knew much about real estate or owning our own home, but we each were able to provide financial security to each other.
What was the outcome?
We still own the home, live in it, and rent it out. We plan to sell the home in the summer of 2021.
Lessons learned? Challenges?
Make sure that you ensure the seller puts in writing any repairs they agreed to complete on the home before you move in. Not everyone sticks to their word come signing day.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I would recommend both my real estate agent and my lender.
Agent: Charles (Chuck) Hannema - Edina Reality
Lender: Kathy Harrison - Bell Bank