First Investment Purchase

[Mitch Horwart]

Investment Info:

Single-family residence buy & hold investment in Omaha.

Purchase price: $150,000
Cash invested: $5,000

This was a 4 bed, 2.5 bath single family home that I bought as my first home purchase. Currently my primary residence and house hacking my other rooms.

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

I wanted to find a home that would be a perfect house hack. With every room filled I cash flow $400 living in my own house.

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

Found this deal off the MLS, and made the offer within hours of it going on the market. A couple of counter offers later we agreed at the asking price.

How did you finance this deal?

Conventional financing - First time home buyer program that allowed me to put only 3% down or $4,500. After closing, I was all in at $12,000.

How did you add value to the deal?

This was essentially a turnkey property so there was not much I had to do. I analyzed enough deals to know it was a great deal right away.

What was the outcome?

Cash flowing $400/month as a house hack.

Lessons learned? Challenges?

There were a couple of things I looked over on the inspection report like a slow draining bath tub that ended up being a $250 plumbing bill for me. I should have been more diligent with the inspection report and negotiated better. I was so excited to be doing my first deal and looking back I have become a better negotiator because of it.

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

My agent was Lauren Mielke with BHHS, and my lender was Gabe Kopun with Metro Credit Union.