First house hack bachelor pad

[Alejandro Ferro]

Investment Info:

Single-family residence fix & flip investment in East Norriton.

Purchase price: $252,500
Cash invested: $30,000
Sale price: $350,000

This property was a house hack. A SFR with an in-law suite. The house was original 70s cosmetics when I purchased it with the in-law suite added in the early 90s. I rented out the in-law suite to a friend during my whole ownership which paid 75 percent of my mortgage. Updated all the bathrooms and flooring, Relocated and sold the property (should have kept renting it).

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

I was tired of renting an apartment and this deal came across my lap. Could not say no to having a pool, a sunroom which I put a hottub in, an in-law suite to help out with the mortgage. As a single 28-year-old, I could not have gone wrong.

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

It was on the MLS. I negotiated it through my realtor. They already had it good priced was able to negotiate $6500 toward closing cost as a concession.

How did you finance this deal?

Conventional 20% down as I had a good w2.

How did you add value to the deal?

I remodeled the master bathroom by expanding it adding a double sink and a large shower. Also built a custom walk-in closet to it. Updated the deck as it was old and rooted. Remodeled the other two bathrooms.

What was the outcome?

Net about 50K after closing cost and commissions. not including the mortgage for four years was paid 75% by my tenant, in the in-law suite.

Lessons learned? Challenges?

Should have never sold it and done a BRRRR. Continue to grow a portfolio.

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

Jeff Faultebaurer with Keller Williams in Montgomery county, Pa has been my go-to guy for my flips and purchases since this transaction.