Client Success Story - Washington DC Condo House Hack

[Cassidy Burns]

Hi BP,

Wanted to share a success story of a BP member who just closed on his first "investment property" in Washington DC.  He used 5% down conventional primary residence financing, is going to house hack the unit for the next 1-2 years and then turn it into a long term rental.  

The Numbers: 

-Purchase Price: $509,250

-Appraised Value: $538,000

-Initial Equity on Buy: $28,250

-Down Payment: $40,000

-Mortgage: $2,546/month (PITI + Condo Fee)

-Projected Rents for new construction condo in Petworth: $2,800/month

-Potential Cash Flow once he moves out: $254/month

-Very low CapEX due to being new construction and has builders warranties for 2 years, manafaucters warranty for 1 year.

-He's going to be renting out a room to a friend for $1,000-$1,200/month

-Will be living in Washington DC for $1,350-$1,500/month while building equity

This is the classic example of using primary residence financing with low money down, house hacking, and then having a cash flowing rental in the future.  This, in my opinion, is the best strategy in the DMV currently.  Market is very hot in the single family space market, so time to adapt and take advantage of the assets the masses aren't .

Cheers.