Large Single Family - Psuedo Multifamily

[IBEJesus O Prince]

Investment Info:

Other buy & hold investment in Augusta.

Purchase price: $144,000
Cash invested: $8,000

I purchased a 6 Bed 3 Bath split level home in which I rent the 3 rooms upstairs to traveling professionals via Airbnb and my husband and son live downstairs.

The rent collected covers PITI and Utilities.

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

While I was originally approved to buy a fourplex, there weren't any on the market worth taking. So, I asked my realtor to find me a really big house 5+ bedrooms. Though my path changed, my goal of having three doors under my belt didn't falter!

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

My NACA Realtor

How did you finance this deal?

I went through the strenuous and intricate process of NACA to fund my deal. The $8000 I brought to the table was used for insurance escrow and buying my interest rate down to 2.5%. Please Google the benefits of the NACA mortgage if you aren't familiar.

How did you add value to the deal?

I was able to roll my vinyl privacy fence and driveway extension into the mortgage.

What was the outcome?

My guests make it so that my family and I live for free while retaining a lifetime asset.

Lessons learned? Challenges?

Oh boy! I brought the house from a first time flipper, who did a horrible job on the plumbing. Being that the plumbing exist behind the wall, home inspection nor appraiser caught it. His plumbing mistakes caused my about $12,000 in damages. I had my reservations about buying a house that was completed by someone else simply because I didn't know for sure their commitment to quality. Moving forward, I will likely stay away from flips and stick to renovating the house myself.