Updated over 4 years ago on .
First Investment: House hack near the University of Delaware
Investment Info:
Townhouse other investment in Newark.
Purchase price: $190,000
Cash invested: $25,000
This property 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, knew 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.
How did you add value to the deal?
I noticed the house had two living rooms and after hundreds of hours of BP podcasts I knew that meant hidden bedroom. Cha-ching.