Turnkey Rent Free Living

[Masyn Grant Barney]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $571,000
Cash invested: $28,550

I was the buyers agent helping my 2 clients get into a SFR that they house hack. It was an incredibly well maintained home with a beautiful mother in law apartment. We initially had the property under contract for less but we negotiated it up in exchange for seller concessions of 3% of purchase price. Those concessions paid for all closing costs including a significant rate buy down. They live upstairs with 2 other roommates and rent out the apartment below them.

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

My clients wanted a property they could house hack day 1 without a large cash investment. They had their 5% down payment and could have paid their own closing costs, but wanted to hold onto as much cash as possible. So we strictly looked for turnkey properties with multiple units.

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

On the MLS. This deal was unique in that we negotiated the purchase price up after getting our initial (lower) offer accepted. That is because it appraised high and allowed us to exchange a higher purchase price for more seller concessions. The sellers netted the same $ figure but my clients held onto more of their money.

How did you finance this deal?

5% down 10 year arm loan with a rate buy down.

How did you add value to the deal?

Added a door between the units so they could rent them out separately.

What was the outcome?

They live rent free and only pay their portion of utilities while building equity and learning to be landlords and homeowners.

Lessons learned? Challenges?

When you are buying a turnkey property that is in great condition, it is quite difficult to negotiate seller concessions.

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

I was the agent, we worked with a great lender, title company, and inspector.