My first purchase!! HOUSE HACK!!

[Melchor Domantay]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $280,000
Cash invested: $14,000

This is my first purchase!! I use a FHA loan with a wopping 3.25% interest rate:) I bought it newly rehab and this get me started on buying real estate as a income producing property. The strategy is to house hack so i rented 1 unit and rented my extra bedroom to cover the PITI. The utilities in my unit half due to my roommate. This property gave me the confidence to buy my next one.

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

Just wanted to live for free.

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

Found it from a non-investor friendly realtor. I did negotiate a 3% credit at closing which helped a bunch for not bringing too much money on the closing table.

How did you finance this deal?

FHA!! 3.5% down and 3.25% interest rate.

How did you add value to the deal?

Didn't add any value on this deal because it was fully rehab. It did appreciate quite a bit since 2016. I believe this deal open my eyes to the opportunities that real estate can give a person.

What was the outcome?

I still own this property. It break even every month. I am contemplating on selling it but my roommate and his friend are occupying one of the units. Still not sure on what to do with it.

Lessons learned? Challenges?

Lots of lesson learned. Learned how to be a landlord, how to buy for cash flow and invest for add value properties. There was not a lot of challenges instead a lot of fear in the beginning because i didn't know what I did not know and this experience made the second one a little easier when it comes to closing.

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

I worked with lender and a agent but learned quickly on how to have a real estate team to close a property. Investor friendly individual.