First Househack! Mortgage almost covered first year!

[Ryan Overcash]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $247,000
Cash invested: $13,000

Househacking a single-family residence in Garner, NC

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

The goal of this deal wasn't to maximize the return on my money, but to get started with househacking. I bought the home for $247,000 in June 2022 (middle of pandemic) and quickly found 2 roommates paying $1200/month in rent. This almost covered PITI which helped me save quite a bit of money over the next 2 years. The 2 roommates have moved out, so I'm considering renting the whole house and moving on to the next!

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

Listed at $250k on the MLS and got it for $247K during peak Covid concerns. Sat on the market for a month and was able to negotiate $2500 in seller closing cost due to termite inpsection.

How did you finance this deal?

30-year 3% conventional loan at 2.99%... the 3% made sense at such low interest rates

How did you add value to the deal?

No value add, but I do have a sweet garage gym.

What was the outcome?

Home has appreciated to ~400k and will likely rent out this year at $2200/month

Lessons learned? Challenges?

Two story homes should have an HVAC unit upstairs and downstairs. HVAC went out the first 2 summers. Yardwork and home maintenance can be fun but eat up time.

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

I worked with an agent, but I am agent now.