Ultimate Infinite return plus Equity

[Ivan Shalavuta]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $134,000
Cash invested: $44,280

This was a perfect house hack with buying a home as a primary residence using a 10% down conventional loan and renovating while living in it for about a year. After moving out I was able to cashflow ~$1,000 a month but ended up refinancing and getting all my money out of it. Now property still cashflows $450 a month and money that I received from refinance ended up buying me another rental property. Ultimately I achieved an infinite return on my investment: without having any money in the deal I flow roughly $450 monthly and have around $100K equity in the property.

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

The easiest way to start investing in real estate is househack which I was planning on for a while before pulling a trigger.

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

On MLS and negotiated myself since I'm a licensed agent.

How did you finance this deal?

Conventional loan with a 10% downpayment, used my commission towards closing costs, and had a seller pay a portion of the closing costs.

How did you add value to the deal?

Remodeled cosmetically mostly while living there.

What was the outcome?

First roughly $1,000 net cashflow a month, then after refinancing ~$450 net passive income a month plus extracting around $44,000 out of it.

Lessons learned? Challenges?

Vetting specialists for the work that needed to be done including the property manager. Struggling with finding great people who do what they say they are going to do.

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

Yes, the local lender was a lifesaver.