First Property (Househack)

[Vinnie Romero]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $107,000

This was my first home, and I purchased with the VA loan. $0 down, was able to get seller to pay all closing costs. At the end of closing, I received about $1300 dollars.
3BD/2BA, I rented out the extra rooms to pay the mortgage.

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

I felt that i've been listening to Bigger Pockets for so long with no action. I was focused on trying to get into multi-family units but was having no success. I decided to shift focus to Single-family, so I could get momentum going.
What interested me the most about this house was, I felt it was listed under market value. I was right, it appraised 15K over their asking price.

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

Zillow was how I found the house. Negotiating to get what I wanted, came from finding a realtor that I felt I could work well with. She wasn't afraid to negotiate, and kept at it until she got the Yes, I was looking for.

How did you finance this deal?

VA Loan

How did you add value to the deal?

I remodeled the kitchen, painted, and installed new flooring throughout the house myself. Also had a contractor installs for new HVAC, and roof.

What was the outcome?

Added roughly 80k in equity (with this current bubble)

Lessons learned? Challenges?

Finish each room/project, before starting a new one lol

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

Veterans United

[Sam Levine]

Congrats!

[Doug Spence]

@Vinnie Romero Congrats and welcome to bigger pockets! 

I have a few questions so others can learn more from your experience:

1. What is your total mortgage payment per month and how much rent do you collect for the other bedrooms?

2. What interest rate did you get on your VA loan? Was this your first time using it?

3. Will you buy another property in the future? If so, how will you fund the purchse and will it be in Fayetteville again?

[Vinnie Romero]

Quote from @Doug Spence:

@Vinnie Romero Congrats and welcome to bigger pockets! 

I have a few questions so others can learn more from your experience:

1. What is your total mortgage payment per month and how much rent do you collect for the other bedrooms?

2. What interest rate did you get on your VA loan? Was this your first time using it?

3. Will you buy another property in the future? If so, how will you fund the purchse and will it be in Fayetteville again?

 1. Total mortgage is $660 after insurance/taxes. I was renting one bedroom out for 300 +utilities. I planned on renting the other bedroom out for the same, so I’d be living there for free. Since I was living there, I was being picky with screening potential tenants. I ended up not picking up a 2nd roommate, and decided I would pay the 300/month to have a stress free living environment. 

2. 3% interest rate (Nov 2020). This was my first time using the VA loan. It's a great benefit for active duty/veterans that I highly recommend for those that qualify.

3. I do plan on buying again in Fayetteville. Being a military town, it has high demand for rentals. Most service members get stationed here for 3 years, and they have a steady income. I’m actively looking, but waiting to see what the market will do Jan-Mar 2023. 

[Wale Lawal]

@Vinnie Romero

Congrats!

Create a team of trusted professionals as they help you get you strategies executed effectively.

All the best!

[Doug Spence]

@Vinnie Romero Wow so your monthly housing expense is only 300/month? Thats fantastic and it highlights how awesome the house hacking strategy is when used with the VA loan. Nice work.

When will you buy again in Fayetteville? Will you keep this house and use your VA loan again to buy another house?

[Nicole Masters]

Congratulations Vinnie on your start into real estate investing!! It's so exciting! I love that you pivoted from multi family to househacking. I think a lot of people are afraid to make that pivot, but there's so much competition with multi family that if you're able to get into a single family home and complete what you're looking to do it can be such a huge advantage! 

I do rent by the room house hacking in Sacramento so let me know if you have any questions as I'm always happy to chat!

[Dave Peterson]

@Nicole Masters Interesting method to rent by the room.  How do you vet that an incoming renter will get along with those already renting?