House Hack to get started

[Joshua Erickson]

Investment Info:

Single-family residence other investment.

Purchase price: $200,000
Cash invested: $22,000

This is my first deal and I decided to House Hack. I purchased a house with a studio tiny house on the adjacent lot. I rent out the tiny house to supplement the mortgage on the main house in which I live with my family. I am now working to purchase the house next door to us using hard money and then BRRRRing the property.

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

I wanted a house in a good area, but with a low mortgage. House Hacking let me do that.

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

By letting my friends know I was interested in an income property. One of them let me know he had one he was moving out of and sold it to me before putting it on the market. As a result I got it at $39K below it's pending list price.

How did you finance this deal?

A traditional home loan and personal savings.

How did you add value to the deal?

We added 400 SQ feet to the main home by finishing the attic space which added 2 bedrooms.

What was the outcome?

Still living there at a fraction of the actual cost!

Lessons learned? Challenges?

It's been smooth sailing thus far. However, comps in the area are almost non existent as the town only has about 900 inhabitants. It is hard to tell exactly where we stand in terms of equity.

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

YES! My realtor, Robert Medof was great and is helping me with my next deal as well.