Southern Single Family HOUSE HACK

[Jordyn Johnson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $248,000

I originally purchased a 4-bedroom home with the VA loan and was residing in it until I got accepted into the Army Career Skills Program. Once I began the program, I moved out here to San Diego and have been renting out all 4 rooms since March. It is projected to be rented out at least until July 2023. House Hacking is an incredible investment strategy for new investors or investors that may not have much capital to start out!

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

I was searching for a home to reside in and house hack. I wanted to take advantage of the VA loan as soon as possible. I saw seven homes before this one, but this one stuck out the most. I fell in love with it instantly, as I have always had a strong passion for interior design and studied that in college. This home was one that I knew would easily rent.

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

I actually found this property on Zillow. I had seen it right before going to see another home and asked my Realtor if we could see it that morning. We were the first to see the home and make an offer on it. I didn't have much money at the time, and my Realtor had negotiated closing costs in the home purchase price.

How did you finance this deal?

The VA loan, no money down!

How did you add value to the deal?

I was willing to increase the offer so that I could roll in the closing costs into the mortgage. My Realtor and I took instant action on it. It was 2021 and not in a hugely hot market at the time. The seller was a flipper, so selling as quick as possible was important to them. They saw my offer first and it was a few grand over asking price, so they accepted the offer that day.

What was the outcome?

It has been rented out since the purchase date, covering the mortgage and bringing in at least $1700 of cash flow every month. I created a niche of renting to travel nurses, so fairly short term. I enjoyed designing and furnishing the rooms and ensuring the nurses' needs were taken care of.

Lessons learned? Challenges?

I learned that I could have rented the rooms out for more in the beginning. I didn't know what I was doing and could have negotiated a bit higher on the rents. At the beginning, I rented to my friends and I wanted to do them a favor. The other challenges were getting used to living with other people and essentially cleaning up their messes and ensuring it was picture-perfect ready when I was showing the house to potential tenants. I learned more about maintenance, repairs, and systems.

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

Absolutely! I gratefully have a whole network of top lenders, agents, contractors, title companies, etc. I would be happy to recommend to others!