Househack at 21 years old fresh out of college

[Alejandro B Yoon]

Investment Info:

Single-family residence other investment.

Purchase price: $248,000
Cash invested: $22,000

Househack on a 4/2.5 SFH in Southwest Houston. First property to ever own, a hard fixer upper.

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

Saving money on rent and building wealth!

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

Scouring the MLS for over a month. I had an agent since I was busy working overtime during the tax busy season.

How did you finance this deal?

Conventional loan with 3% down. Used an offer letter mortgage since I had been in college full time for my bachelor's in accounting. I then used cash to renovate the home to be rent ready.

How did you add value to the deal?

Replaced flooring, repainted the entire house, installed new trim, new doors, and cleaned like a maniac.

I plan on resurfacing bathtubs and bathroom tile, fix garage doors, improve landscaping, and get a new backsplash/countertop for kitchen throughout the year before I house hack another home.

All the comparable in the area are selling for 40k+ over our purchase price, I will consider refinancing whenever the FED cuts rates.

What was the outcome?

All rooms are rented within a month of purchasing the property. I have a negative cashflow of $200 + utilities, but that is fine since I am occupying the property.

Lessons learned? Challenges?

Do not replace/rehinge new doors by yourself, quite possibly the most frustrating experience I have had.

Use a mask while painting large areas so you don't get high off the fumes.

The entire house had dried, chewed up gum throughout the floor and walls. Removing these were difficult and generally a steel wool scrubber would do the trick.