First Property Details

[Griffin Malcolm]

Investment Info:

Single-family residence buy & hold investment in Schenectady, NY

Purchase price: $180,000
Cash invested: $9,000

House-Hacking this one. Doesn't flow any money to start but when I move out it will. Appraised for 230k. Got a home equity loan for 33k. Puts me at +17k equity to start which I'm happy with.

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

Wanted to begin my journey with a house-hack as it seemed like the lowest barrier to entry for a new investor

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

MLS. Went back and forth after discovering it needed repairs, so when I requested to be released from the contract the buyers offered to take another 30 grand off, so then I signed.

How did you finance this deal?

Conventional loan with 5% down. Seller concessions of 5k to pay for all my closing costs (Trustco has really low closing costs).

How did you add value to the deal?

Because the property needed work and appraised for 50k more than I paid, I turned around and used a home equity loan for the repairs. I'm also in the process of painting everything and re-doing the hardwood floors, so hopefully all these things add value.

What was the outcome?

I don't cashflow right now, but I get to live with my friends for free which is great. Once I move out I can rent my room which will then let me cashflow. Currently have 17k equity in the home which hopefully will only increase.

Lessons learned? Challenges?

Really pays to get a quality home inspection and get multiple quotes for repairs. $500 for a thorough inspection is still far cheaper than getting into the house and discovering tens of thousands of dollars in hidden repairs. Plus, what is discovered during due diligence can be used as leverage in the negotiations.

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

J Squared Home Inspections and Peter Porcello of Chad Majewski Real Estate were both outstanding