My First House Hack - So Far So Good

[Ian Holtson]

BP Community,

Firstly, thank you all for continuing to engage on BP, and provide an educational platform for those of us just getting our feet on the ground in the realm of RE. To quote one of the most overused, but accurate phrases, thanks for adding a ton value to the site.

The Project:

I got my RE license, and was able to find a town home listed for 80k on the MLS. I chose to get my license so I could learn more about the buying/selling process, plus I want commission when I do either of those things. My dad is my cash partner (70/30). I realize I am blessed to have that option, and it's made our relationship stronger working side by side on the project. Anyway, enough sap. We are 35k all in (including down payment).

We bought the property in July, and I moved into it with my girlfriend and brother. I initially thought we could finish the rehab in November, but we just finished this month (lol a little ambitious on my part). Our PITI is $530, and rents in the area are $1,000-$1,400 depending on the level of finish; we are shooting for $1,200 when we rent it out. My friend just moved in this month, and the four of us pay $250 each/mo. This is my favorite part! We all cut our living expenses by more than half, and our account for the property accumulates $470/mo. after PITI. We plan on using a chunk of this to help pay for our next property, while keeping some for reserves. I have a full-time job at Indiana University (Bloomington, IN), but this project has made me a better real estate agent hands down. I can confidently talk about renovating, have a much more intimate insight into the buying process, and am a homeowner myself. I'm now looking for the next one!

My purpose of this post was to help anyone along who is looking into their first deal. Please feel free to message me if you want to connect, and talk about the buying process, renovating, or just talk about what you've got going on!

Special thank you to @Brandon Turner @Joshua Dorkin @Mindy Jensen @Scott Trench @David Greene. Your conversations have really opened up my mind, and given me some necessary coaching and encouragement during this journey. You made the days where I would wake up and know I have to sand/paint all day way better (I hate sanding).

-Ian