House Hacked My Second Primary Residence

[Nick Velez]

Investment Info:

Single-family residence buy & hold investment in Gainesville.

Purchase price: $170,000
Cash invested: $7,000

This is my primary residence that I have house hacked since I purchased it. I live for free and collect $100 a month in cash flow after accounting for expenses. I purchased this slightly under market value for $170k and I recently got it appraised for $247k after adding some sweat equity to the property. Once I move out and turn it into a full time rental, it is projected to cashflow $600 a month.

What made you interested in investing in this type of deal?

I love living for free and the low down payment e=requirements of owner occupied homes.

How did you find this deal and how did you negotiate it?

This property was sitting on the MLS for about 6 months and needed a new roof and was pretty outdated. I was able to get about 15k off the asking price and negotiate a new roof at closing,

How did you finance this deal?

I used a Fannie Mae home ready loan because of its 3% down payment requirement.

How did you add value to the deal?

I have put a lot of sweaty equity into this property by re-doing almost everything including interior/exterior paint, new flooring, new bathroom vanities, new privacy fence, and much more!

What was the outcome?

I refinanced the home and was able to remove PMI, lower my payment slightly, and pull out about 22k in equity, one year after purchasing the house.