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Updated almost 2 years ago,

User Stats

37
Posts
36
Votes
Evan W.
  • Developer
  • Asheville, NC
36
Votes |
37
Posts

My First House Hack was a Home Run - 17k NOI & 100k Equity in Two Years

Evan W.
  • Developer
  • Asheville, NC
Posted

Investment Info:

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

Purchase price: $255,000
Cash invested: $8,000

Put 5% down on a 4bd/2ba SFH flip with ADU in the backyard south of Raleigh, NC (negotiated 15k seller credit that made my cash invested effectively zero). I rented the 4 bedrooms up front individually, and lived in the ADU for a year while still bringing in profit each month. Moved out February 2022 to pursue next house hack. Over 100k equity, and 17k NOI after renting the ADU last year. Appraised at $375k and closed on a HELOC in July 2022.

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

The numbers worked. Cashflow estimate was huge with 5 total rentable spaces.

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

MLS with my local agent

How did you finance this deal?

5% down conventional loan for primary residence

How did you add value to the deal?

I added value by negotiating 15k seller credit, and creating a room rental model that doubled the rent potential.

Lessons learned? Challenges?

Trust your gut (the way you feel around them) when vetting potential renters. I made the mistake of renting to someone who showed me red flags from the beginning. The energy and attention it sucked out of me was not worth the extra month of rent.

Agree on prices with your contractors up front - unless they are organized professionals (most independent guys are not), they will usually bid you high with the first number. Tell them what you can pay. It's always a negotiation with these types.

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

Yes, Dana Ben with Dana Ben Realty Group is an agent in Raleigh who owns a couple investment properties. She will hustle for you if you are open with her.