House Hack in Walnut Creek

[Tommy Loretz]

Investment Info:

Single-family residence other investment in Walnut Creek.

Purchase price: $1,199,000

We are using the property as a primary residence house hack. It was originally listed for $1,399,000 but we secured it for $1,199,000.Our appraisal came in at $1,352,000. The top level consists of a three-bedroom plus a full bathroom (used as the primary residence) and a studio with a full bathroom that was previously used as an art space. We furnished the space and added a fence to provide a private yard for the studio. We have been generating $2,000 a month through Furnished Finder.

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

We always intended to begin our investment journey with a house hack and this property delivered. We were originally planning to buy a fourplex but when my wife and I found out she was pregnant, we prioritized a single-family in a safe neighborhood that still provided house-hacking potential.

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

The property was listed on the MLS. We waited until the price dropped by $200,000 before making an offer. I represented us as the selling broker.

How did you finance this deal?

We used a 0% down VA Loan brokered through the One Brokerage. I used the commission from representing us to fund the closing costs.

How did you add value to the deal?

We are planning to renovate the property after living here for 2+ years and then sell it. We will then repeat the process.

What was the outcome?

N/A

Lessons learned? Challenges?

Systems are how you build a business. Also, Furnished Finder is an amazing resource.

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

I would recommend myself as the real estate broker (lol) and Braydin and Nolte Mehnert at the One Brokerage as our lenders.

[Tommy Loretz]

@Doug Spence 5.0% flat but I spent about $8,000 to buy down points. The monthly savings will be greater than what I paid down in approximately 20 payments so it made sense to me with a 2-year plus hold period.

It's David Greene's loan brokerage so they were pretty knowledgeable about different investment scenarios.