My first investment: Large single-family with pool to house hack

[Roberto Torres]

Investment Info:

Single-family residence buy & hold investment in Santurce.

Purchase price: $132,000
Cash invested: $14,000

First investment bought in San Juan, Puerto Rico with FHA 203k loan. Living in it as a house hack while renting three other rooms on Airbnb. Plan is to buy new property this year and leave it running with 6 Airbnbs in total.

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

Finally getting into real estate. House was foreclosure just down street I was renting. Happened to be at the right time in the right place. Selling price was below actual value and got instant equity.

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

Noticed house was vacant after hurricane María. Found out broker who was going to sell and overbid what they listed it for because knew it was below market value.

How did you finance this deal?

FHA 203k loan. Divided up front cash between girlfriend and family.

How did you add value to the deal?

FHA 203k loan handled most of the repairs to fix up foreclosure property.

What was the outcome?

Our first incredible property! Has one of the largest lot sizes in the area because it used to be 2 separate lots. This gives it a giant yard with pool, rare in the area. Amazing deal and still can't believe it... Will use instant equity to fund next deal using HELOC.

Lessons learned? Challenges?

Starting out in real estate is the opposite of passive-income so don't expect to have everything settled on your first buy. It is hard work and a lot of moving pieces but worth it at the end.

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

Amazing contractor that worked with FHA 203 loan