House hack near the University of Delaware
Investment Info:
Townhouse other investment in Newark.
Purchase price: $190,000
Cash invested: $25,000
My first investment, a house hack near the University of Delaware. It is a 3 bedroom 2 bathroom townhome. I live in the master bedroom and have the other 2 rooms rented out ($800/month and $700/month) which breaks even or cash flows $50 depending on utilities.
This house had 2 living rooms when I bought it (hidden bedroom) and I am in the process of converting it to an additional bedroom that will rent for $800/month. Once completed I should cash flow $600 after all expenses and cap ex given the projected rate of expense increase.
What made you interested in investing in this type of deal?
I needed to get started in real estate investing and knew a house hack would be the easiest way. I used to live in central NJ which is a very expensive market, however I had an opportunity to move to Delaware last year. The company I work for had a small, new office in Wilmington DE. I analyzed the DE market, new house hacking near a university would be effective for rent by room, and pulled the trigger. I moved 100 miles from friends and family to start this journey and I am pumped for more!
How did you finance this deal?
I financed this deal with a 5% down conventional loan.
Most Popular Reply
Nice! As a UD alum I have given thought to investing in Newark student rentals. A good rental at a reasonable price will have no vacancy at all, but students can also be very rough on properties.
Nice little town! Go check out Gyro Kabob House. One of my Saudi classmates introduced us to them and it immediately became our favorite restaurant. Any time I drive through I stop in and get a meal there.