Another house hack in the books (delayed Nov 2021)

[Joseph Gisler]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $240,000
Cash invested: $13,000

Another house hack in the books! Listed in a HOT market at $240,000, this 3 b1 ba brick ranch home located 15 minutes from the heart of Raleigh was a perfect investment.

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

The location, and vision I saw with the property just from the photos. It fit perfectly into my goal.

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

I put in an offer AT ASKING in a market where everything was going over asking. What I did instead of over bidding is what got me the deal. I put $10,000 down as dd (which was almost my entire downpayment on a 5% Conventional loan), waived inspection contingency, allowed them to leave anything they wanted (they had a lot of junk) and I said I would pay up to $10,000 over an appraisal (the property was bigger than most on the block so a slight chance it would under appraise).

How did you finance this deal?

5% conventional loan, luckily the deal appraised for $250,000, $10,000 higher than my offer giving me instant equity!

How did you add value to the deal?

So far, I have not put much money into this property at all, a few maintenance issues and a few initial small projects to get the property ready for tenants. This property gives me an excellent opportunity in the future to add a bathroom and eliminate a wall to make it a much better layout. With this, I plan in the future to fully renovate the property to be an airbnb.

What was the outcome?

Since then, this property has been wonderful to me. After living in it for my required time I have since put tenants in the space, and making a little income off the property with the potential to make a lot more in the near future. Right now there are traditional tenants in the space which I went with because so far I have done little to no work on the house, only minimal repairs and maintenance. My plan, once they leave, is to fully renovate the property to be an airbnb.

Lessons learned? Challenges?

I was given the chance to up my bid due to a multiple offer situation but I liked my numbers where they were at and stayed true with my offer... and that was a huge lesson, listen to your gut.

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

Yes, Tiffany Alexy with Monarch Realty. While I am a realtor myself now, I still highly recommend her and if I at any point don't continue being a realtor, I will 100% go back to using Tiffany.