Second Property (Primary Home)

[Stefan Shirley]

Investment Info:

Single-family residence buy & hold investment in Falls Church.

Purchase price: $630,000
Cash invested: $5,000

This is our primary residence but we also house hack it. The cost of living in this area is quite high so having roommates is a wonderful way to help pay off the mortgage.

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

The military brought us to the Washington D.C. area but we thought it would only be for a couple years. That was 2012 and we're still in the area. We were originally renting but I couldn't stand to see the money go to someone else; thus, after two and a half years as renters, we decided to buy. Our only requirements; close to DC, close to the metro, and have a walk-out basement.

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

We started going to open houses in various areas of Virginia and D.C. Three months later, this property went on the market. The place was just a mile from where we were renting and met all the criteria we wanted from a property.

How did you finance this deal?

We used a VA loan; no money down and put the closing cost in the loan. After negotiations we were able to get the final bill to around $630k.

How did you add value to the deal?

There is a 1/3 acre yard that we reseeded and continue to fertilize and weed. We also added a doors to separate the upstairs / downstairs. Further, we painted everything, had some electrical and plumbing work done, and even added a washer / dryer upstairs. All this so we could have roommates in the two basement rooms and allow them to have full freedom of their living situation.

What was the outcome?

We have a beautiful home and two great roommates. The roommates get a great deal and we still benefit by having people in our basement unit that we can trust. It's truly a win-win situation.

Lessons learned? Challenges?

We had a horrendous ordeal with the electrician. I'm from Iowa and thought a handshake deal was good enough. The electrician didn't want to do the job, wanted me to pay in full for work he never planned to do, and the work he did was shotty. We had to call an inspector just to keep the electrician working and to do the right thing. Horrible experience and in the end, he told my wife and I that we were going to hell. We wrote up a long and detailed Yelp review ... never again.

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

We used the Keri Shull team and had a great experience with this. There were some issues with the house that we wanted fixed but the sellers were reluctant. In the end, the Keri Shull team got the things taken care of and we're happy we used them to close.