250k profit in 3 years on a househack
Whats up BPers.
I rarely post on here but figured this would be a good one for anyone thinking that house hacking is too slow or may view starting with one deal as not "enough". I bought my first investment property when I was 19 and the deal Im referencing here I bought when I was 22.
I bought this duplex with an owner occupied loan (about 20k down) and put about 15k into the property upon acquiring it. I rented it fairly quickly and had a roommate in it paying $500/mo on my side.
Purchase: 270k
Income Side 1: $1250/mo
Roommate income: $500/mo
Payment $:1900
Out of pocket $300-500/mo for remaining mortgage/utilities/expenses.
I've owned the property for 40 months and in that time the market has absolutely gone insane. I sold the property for $560k and netted $250k after taxes/fees/etc.. not factoring in the rent savings.
Key Lessons:
Make the sacrifices: I remember scrubbing the floors on a friday night so I could get a tenant in there while all my friends went out and partied thinking one day this will be worth it. The units when I bought the property were a mess.
Run the numbers: I bought the property with the intention to hold it forever and cash flow it. I didnt plan on this kind of appreciation.
Start: Too many people are pinching pennies and are being to paralyzed by fear or doubt. Just start.