"Accidental owner-occupied Airbnb" turns into student housing

[Jack Yen]

Investment Info:

Single-family residence buy & hold investment in Charlotte.

Purchase price: $66,000
Cash invested: $66,000

In 2012, we found this through HUD while I was in grad school. Made an offer when only bids from owner occupy were allowed, got the offer accepted, pay cash with insurance money from my mom. Rented the other room to cover my bills and extra. We used the equity to get a HELOC to make the downpayment for our current primary home(which will turn into a rental when we moved soon) and also help me to start my own escape room business. Mission X Escape Room in Durham, NC. www.missionxescape.com

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

It's purely by accident but help me to learn about how the real estate transaction works.

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

Found it through a realtor. We negotiate down a little by paying cash

How did you finance this deal?

Cash from insurance money from my mother.

How did you add value to the deal?

The CMA today is around $145000 so we gain some equity.

What was the outcome?

Our first real estate purchased by accident but learn a lot.