College House Hack - Texas A&M

[Nicholas Hill]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $100,000
Cash invested: $20,000

A foreclosure house my family purchased to house hack while I attended Texas A&M for my undergrad in Mechanical Engineering, I was a present landlord throughout college, now I'm a out of town landlord as my job took me to Houston.

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

It basically came out to nearly free rent throughout college, and with some extra money around, seemed like a great investment.

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

It was a bank foreclosure that my realtor knew about.

How did you finance this deal?

Conventional loan, 20% down.

How did you add value to the deal?

Didn't really add value, minor rehab to make it more attractive.

What was the outcome?

At the time I didn't know about BP or any serious real estate investing, just simple rental numbers made sense, really only looked at the mortgage vs rent. Made for more or less free living through school, didn't track all the numbers but came out decent for a rental unit. Got very lucky with house values raising around it, should result in a nice profit when selling in near future.

Lessons learned? Challenges?

More research into full costs and running all the numbers. The property really wasn't compared to any others, nor was a true analysis done. It still could have been one of the better options when it came down to speed and numbers, but more due diligence should have been done.