Buy A house for less than 10k

[Austen Mueller]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $176,000
Cash invested: $7,000

First HouseHack In Reading PA. Leveraging a FHA loan I was able to buy a turnkey property as a househack for only 7k. Property is a nice brick building in the North East section of Reading by Albright College. Property consists of 2 large 1bed/1bath units with finished basement and shared washer dryer.

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

We had little capitol to invest and also wanted a place of our own.

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

I found this deal on the MLS. I am a real estate agent, so I always had an eye out. There was not a lot of negotiating to be done due to the current market situation, and the fact we were using an FHA loan. However, I was able to take advantage of the 6% seller assist rule for a primary residents. I waived my 3% fee in return for cash back at settlement on top of the cashback on settlement I already requested. This made the deal even more affordable.

How did you finance this deal?

FHA loan for 3.5% down. 3.8% Int. for 30yrs

How did you add value to the deal?

We are currently updating our unit we are living in.

What was the outcome?

We have an awesome tenant who helps us pay our mortgage. Our bottom line is around $500/mo we pay out of pocket. This is way better than renting!

Lessons learned? Challenges?

Biggest challenges was facing the lack of inventory. I probably paid a little more for it. But that wasn't a big deal because we used a low money down loan, and received around 6k back at settlement. What was important here was to capitalize on the current Interest rate, and get something under contract.

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

I was my own Agent.