First investment in the books! South Austin househack/brrrr

[Ryan Leake]

Investment Info:

Single-family residence buy & hold investment in Miami.

Purchase price: $385,000
Cash invested: $50,000

Rent-by-the-room househack/BRRRR in South Austin

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

Found roommates that cover 90% of my expenses and was able to add value through cosmetic rehab

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

Found on MLS after $40k price cut and had seller pay for all closing costs, which included a two point rate buydown

How did you finance this deal?

Conventional, 30 yr fixed, 6.74%

How did you add value to the deal?

Re-painted interior and exterior of house, replaced carpets, updated fixtures, new garage door

What was the outcome?

Renting out three of the four rooms and living in one myself. Everyone is getting along and the house has remained clean so far

Lessons learned? Challenges?

- Have a contractor walk-through the house to get a better sense of rehab costs before negotiating terms with seller.
- Can get peace of mind and better sense of a property's near-term and future expenses from having all inspections done of front (make sure to test out plumbing and check for potential leaks during walk-through!)
- There will always be demand for affordable living situations, people look on FB marketplace, craigslist, roomster, and FB groups for options

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

Agent was crucial in finding right property and being patient through process.
Lender was also super communicative.
They worked really well together as a team, made my life much easier.