Closed my first house hacking deal in Los Angeles (LA) - Part 2

[Vinay C.]

Hello BiggerPockets family,

It's been couple of years since I wrote my first post (https://www.biggerpockets.com/forums/223/topics/575632-closed-my-first-house-hacking-deal-in-los-angeles-la-part-1?page=1#p4237043). I'll keep this short. 

6 months into my FHA loan, I refinanced it. The appraisal came out to be $790K. I got a first loan 80% 7/1 Conventional loan for 3.875% $632,000 and the second was a HELOC for $58,500.

So my current payment for P&I is $2987/month down from $3900 (P&I and mortgage insurance). I got rid of the monthly mortgage insurance of $586.71. 

The back house is rented for $2500. 

So all up my rent turned out to be $487 + $750 = $1237/month vs $2500/month that I was paying while the tenants paying my rent building my equity. 

I am also using the savings to pay my mortgage a little faster and have my HELOC as a buffer for expenses.

It has also showed me how fast you can build equity. All this has peaked my interest in Real estate and I want to help millennials like me on this path to financial step up. This led me to get my Real estate license in that pursuit. 

If you have questions on starting your real estate journey in LA, feel free to reach out to me. Here to help. 

Cheers

V

[Vinay C.]

@Victor Ong yea it was a cash flow move. I had to clean out the back house and rent it. It was a good 2 weeks of work. The property is in North Hollywood. 

It also appreciated well. Noho west opened up recently with a new Trader Joe’s which is a 3 min drive from my place and there’s a Whole Foods that’s opening up later in the year which is a 5 min drive. With this I believe the property value would climb up even more. I hope the covid situation doesn’t slow the property appreciation. 

Getting a property with FHA loan was challenging. I had to put in over 50 offers before I got this one. This one I went over the asking price by a bit since the numbers made sense to me.