3rd Investment House Hack proptery

[John Garcia]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $206,000
Cash invested: $20,000

A home that is within walking distance to the University of Houston. Leased out by the room. 3:2 home. There is enough space to add another small 1/1 or 2/1 room in the back of the yard.

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

Moved to the city and house hacked my home, I chose a home next to a location where college students would live.

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

The property sat on the market due to the property sitting on two different lots. The seller also owned the side lot that the property was on, so potential buyers did not want to work with that issue. I decided to sign a contract and I did have issues with the seller' Title company, we were able to change the Title company that worked on these issues. The closing did take 2 additional months, but I was able to buy and have the paperwork notarized regarding my property being on two lots.

How did you finance this deal?

Yes, I decided I was going to live at the property and was able to get a standard FHA loan, since my other properties were investment homes.

How did you add value to the deal?

I cleaned up the house and made adjustments to the backyard. I did buy desks, beds, and small drawers for all the rooms for the college student, including my room, I will be moving out soon. I will be house hacking another home.

What was the outcome?

I was able to house hack the home, live for free, and make some cash flow.

Lessons learned? Challenges?

Fight for what you want and don't be afraid to pull the trigger!