First purchase house hack

[Wesley Charles]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $340,000
Cash invested: $15,000

My personal residence. It's a house hack.

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

I knew I could gain $1,100 monthly over my rental I moved out of.

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

On the MLS. Beat up the seller in the inspection period based on structural issues.

How did you finance this deal?

I borrowed the down payment from family and did a conventional loan. I then took a HELOC out for 9% of the appraised value. My appraisal came in 15k over the purchase price so I got an additional $13.35k in this secondary mortgage.

How did you add value to the deal?

I fixed a couple things in the home and have worked on the yard. I am also the property manager and rent out 3 of the 5 bedrooms.

What was the outcome?

I am making about $400 a month over the 1st mortgage, and saving $700 a month in rent.

Lessons learned? Challenges?

House hack is by far the best financial move a young single person can make to get their career going. It is challenging having roommates and keeping up with repairs for someone who enters with a low cash position.

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

Thomas Charles