House Hacking my First Investment Property

[Austin Burr]

Investment Info:

Single-family residence other investment in Pottersville.

Purchase price: $380,000
Cash invested: $60,000

This is a single family, brick home in SLC Utah, split entry with a big back yard. It worked really well for my family at the time and we were able to buy it before housing prices skyrocketed in Utah.

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

I wanted to get started in real estate investing and knew I could qualify for this home and convert the basement into a rental unit so it was the right house to start with.

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

I am a licensed agent in Utah and so I found it on the MLS.

How did you finance this deal?

I used a conventional loan to secure the property.

How did you add value to the deal?

I added a basement apartment to the house, redid the landscaping, and have taken care of some deferred maintenance on the house.

What was the outcome?

It has been a great first experience, it nearly paid our mortgage by itself while my wife and I went through masters programs and had our first child. Now it is paying me nearly $1,500/month and I did a HELOC on the property before moving out to access equity so now I have someone paying for my money to invest.

Lessons learned? Challenges?

I just switched to my second tenant after moving out of the house and I am learning how much harder it is to be a property manager now that I no longer live in the house. I had to evict one tenant already and am being much more strict in my screening process. This new tenant is much better and even pays a little early every month.

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

I am a licensed real estate agent and I think I bring a lot to the table that I can offer others. I have a great network here in Utah for almost every aspect of the transaction and I am always happy to represent anyone as an agent, with hands on experience with investing, I currently own three properties and am finishing my first flip.