First property - 3 Bedrooms Condo House Hack

[Todor Ialamov]

Investment Info:

Condo buy & hold investment.

Purchase price: $265,000

Bought this as House Hack - lived in one bedroom, rented the the other two

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

My landlord at this time did not want to renew the lease. Moving expenses were actually greater than buying a house (plenty of 0% down payment borrowing options). Because of the power of House Hacking I was paying less mortgage than if I would have rented a room again.

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

MLS. Straight forward deal

How did you finance this deal?

FHA loan - 0% down payment

How did you add value to the deal?

No value added

What was the outcome?

Lived almost free for 4-5 years.

Lessons learned? Challenges?

Biggest lesson - RE ia a forgiving business if you have the ability to hold on to the property. Bought it in 2006 when the market was at it highest. Then the recession hit. The condo turned into a liability. The first and second floor apartments could not sale for $140,000 and both foreclosed. Then things started to slowly get better and better and now it's worth $450,000. and cash flows $1,100.