Hello BP community. Wanted to highlight the details of Sean Links first house hack purchase. Deal closed July 2023. Investment details below! Great job Sean battling through all of the challenges with this first one!

Investment Info:

Single Family Home. 6 Bedroom/ 3 Bath

Main House = 5 bed/ 2 bath. Rent out to section 8 tenants.

ADU= 1 bed/ 1 bath. Rent out on a separate lease agreement (not section 8).

Purchase Price:

$530,000

Cash Invested:

$37,000

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

I have a great job as a software engineer but eventually want to be a teacher. Looking for a way to decrease my living expenses, invest for my future, and live comfortably on a teacher's salary. House hacking was the perfect solution after educating through podcasts.

How did you find the deal and did you or the agent need to do any negotiating?

My realtor Jeff White found the deal on the MLS. There was not a lot of negotiation with price but keeping the deal alive took a lot of negotiation (having an investment friendly agent matters!). My original lender backed out at the 11th hour and I frantically needed to find another lender (thank you Troy Howell). Bad appraisals were a huge problem on this deal and required us to go back to the seller multiple times asking to extend our deadline to close.

How did you finance the deal?

Conventional loan with 3% down as a first time home buyer. I have a high paying salary as a software engineer and actually switched jobs so I could increase my salary and buying power. Before I switched jobs, I was making $90K/year and could afford to borrow 400K. I am now making $126K/year and was able to borrow up to $650K.

Did you add any value?

We added Egress windows to the property so each room can be rented out. Also required some miscellaneous electrical repairs.

Photo Showing ADU + Main Portion of the Home

Projected Monthly Income After Moving Out

Projected Annual Return After 5 Years