First Property at 25

[Toby Kim]

Investment Info:

Single-family residence buy & hold investment in North Charleston.

Purchase price: $130,000
Cash invested: $4,550

SFH 10 minutes drive from downtown Charleston. Last affordable (sub 200k) area within 10 mile radius. Bought it to house hack after college. Now it is under an option contract by my former college roommate/current tenant.
Very proud of this one. My first property and it is going to help a friend become the first to achieve home ownership in his family. Who says we can’t all make money!

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

Was looking for ways to achieve financial independence and experience real freedom. Stumbled across BiggerPockets at 24 in 2019 and my life changed forever. Started saving on a provisional teacher salary and was able to scrounge up $5k by next year.

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

Had a realtor work on a deal for triplex with me for 2 weeks. I couldn't pull the trigger because of $5k. Soon as I bailed he sent me 2 SFH to house hack. 1 was only $130k and seemed to be the cheapest thing listed in 10 mile radius of downtown in habitable condition. Pulled the trigger and closed in 2 weeks.

How did you finance this deal?

FHA loan. I should have used the conventional 97 loan though. But I guess with the little amount of money a .5% downpayment isn't much. I only had a 660 score at the time anyways.

$4550 downpayment, seller pays all closing costs. $800/month PITI.

How did you add value to the deal?

I waited. COVID/inflation took over and my equity just ballooned.

What was the outcome?

Now worth over $220k but the tenant has an option to purchase at $180k within 5 years. Cashflowing +$500/month until then.

Lessons learned? Challenges?

Wish I just pulled the trigger on the triplex. Could have been a much better outcome. But this worked out nicely. Just glad I got so lucky.

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

Yes lender was CMG Mortgage (Dave Restivo). Greatest lender for quick simple loan products.