House Hack In Biltmore/Arcadia

[Francesca Zanzucchi]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $20,000

I loved this home because it was perfect for house hacking. This property had two separate structures a 2bed/2 bath main house and a 1bed/1 bath casita in the backyard. There are a lot of things to consider when purchasing a home to house hack...parking, laundry, access. It can be difficult to find a space that is set up so you are not interfering with your guests space and vice versa, this one had it all.

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

When I was 24, I understood the value of real estate but I also understood that purchasing a home could be a liability. I wasn't will to purchase a house unless it was also producing some kind of income for me, so I started the search for the perfect house hack and found this gem. I ended up living in the guest house for three years and using the front house for a short term rental. Not only did it pay my mortgage but it allowed me to write off 2/3 of my household expenses, a great tax benefit.

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

I found this deal on the MLS. I love looking through the back on market section. This home had just gone back on market after the original buyers (boyfriend and girlfriend) had a fight, broke up, and called off the deal.

How did you finance this deal?

I was a first time home buyer and locked it up for 3.5% down using an FHA loan.

How did you add value to the deal?

The sellers had failed to mention they didn't pull permits so big upgrades, I ended up getting $14k in seller concessions for calling these out during the due diligence process

What was the outcome?

I got an amazing first home that continued to be a cash flowing asset for me long after I moved out.

Lessons learned? Challenges?

Be proactive about contract deadlines. Make sure every document is complete and signed at least 24 hours before the deadline.