House Hack New Construction FHA

[Andrew Galloway]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $465,000
Cash invested: $58,000

I bought this property as an FHA House Hack. After scouring the market, I was able to get large builder financing and discount incentives that allowed me to buy the property at below retail price and get good financing terms. I also quite liked the unique property design. The property appraised at $25,000 over purchase by comparison method and around $60k over by cost method. FHA was the only available financing due to my personal DTI. This is an ROI-focused strategy.

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

Discounts on new construction, wanting to use a house hack strategy, available FHA financing, insurance costs in FL. Lack of experience and availability with finding deals on older homes to be able to buy below retail price and obtain positive cash flow.

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

Extensive MLS and realtor.com searching, real estate agent

How did you finance this deal?

FHA

How did you add value to the deal?

Bought at below retail, financing via FHA to lower downpayment and increase ROI

What was the outcome?

Appreciated $25,000 over purchase.

Lessons learned? Challenges?

If targeting new construction, keep searching for an extended period of time until you find a builder that has a good deal, avoid builders that clearly will be difficult to work with, it was easy to spot.

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

Yes, Sidney Galloway