All Forum Posts by: Account Closed

Investment Info:

Single-family residence other investment.

Purchase price: $138,000
Cash invested: $5,000
Sale price: $168,000

Used an FHA loan on a single family and rented out the spare bedroom. Cash flowed $150-$200 as a rental when I moved out before selling. Owned the property between July 2020- March 2022

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

It dropped my monthly housing costs from $700-ish a month to $150-$200

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

Zillow. Offered 3K below asking and agent got my offer accepted. Property was under contract within a week of being listed.

How did you finance this deal?

FHA 3.5% Down

How did you add value to the deal?

None really.

What was the outcome?

I sold the property 20 months later. The house appreciated 28K in less than 2 years. It was a good result, but that was due to luck and not my skill as an investor.

Lessons learned? Challenges?

I will definitely do more analysis for properties moving forward. On this first deal, this was all I did: "Location is good, I'd pay to live here, let's jump on this fast."

An escrow analysis blindsided me and raised my mortgage payment 30% without me realizing. That prompted my decision to sell and something I'll look out for in future deals.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Angela Hurley

@Account Closed

That's great to hear, the property is actually located in Tallahassee so that helps a lot. Thank you for your advice!

@Charles Carillo thank you for the prompt reply!

Odds are that a homeowner will be the one purchasing, my confusion is primarily about how showings are handled with tenants already in place. I doubt they are willing to have tours done before they move out. In that case should I just make a note on the listing that "Walkthroughs will begin after (date)"?

Hello! My name is Thomas Pascarella and I'm looking to sell a property that I previously house hacked but am now using as a rental property. My tenants are leased up until the end of February and my agent says it can't be listed until the property is vacant to schedule showings. 

I am curious as to how other investors handle selling properties that are leased. Do I wait until the lease expires to get the listing up and have it sit empty?

@Joshua Haynes they do have some flexibility if you need to move for family/career reasons

Hello everyone!

I used an FHA to purchase a SFH that I house hacked in back in July 2020. But for career reasons I needed to move to a different city and am currently renting out the house. I have just a few questions,

when would be an appropriate time to refinance out of my current FHA mortgage?

how much would that cost and how long a process would that take?

would this impact my ability to house hack in my new city in any way?

Any feedback would be greatly appreciated!

@Crispin Wong You're welcome! 

I'd say keep enough cash to last 6 months without a paycheck for personal use. 

For RE purposes, maybe an additional 5K-ish on top of the down payment for any surprises that come up. If 15-20K can cover both of those, you should be good.

I know this isn't the most exciting of answers, but when you do decide to pull the trigger on a property it's really helpful to have your tax documents, pay stubs, and bank statements scanned and uploaded to Google Drive in advance. 

I'd start meeting with agents now and start building that relationship. I had been talking with my agent for a couple months before deciding on the house I wanted, and since she had worked with the listing agent before, she was able to get my offer priority. So make those relationships now! It could make the difference between whether or not you get the property you want.

You'll probably need more cash than you think for the first property. I was eager to start investing too, and it's easy to forget you'll also need cash for inspections, deposits, closing costs, on top of any personal life things that come up. Your car might need new tires the same day the down payment comes out of your checking account, and that's just a lot more stress than you need haha.

Best of luck!