Home Hack in conjunction with graduate school

[Nate Hatfield]

Investment Info:

Single-family residence buy & hold investment in Pacific Grove.

Purchase price: $520,000
Cash invested: $112,000

Single family home. 4 Bed, 2 Bath

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

Home Hack while going to graduate school

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

This was listed on Zillow which I was keeping an eye on. Because it was bank owned, I was able to negotiate based on the few borrowers who could get lending in 2011. This house has been dropping in price from $675,000 (owed to lender), to $529,000 when I put in an offer for $520,000 and $50,000 earnest money which was immediately accepted.

How did you finance this deal?

Conventional Loan

What was the outcome?

This was a pure timing outcome. The home was bank owned when the banks were subjected to stress tests and wanted to get rid of any non-revenue generating assets.

Lessons learned? Challenges?

Having a lot of cash on hand when lending was shut down allowed me to be the only qualified buyer who could close quickly.