First House Hack Attempt

[Matthew Fleck]

Investment Info:

Single-family residence buy & hold investment in North Bergen.

Purchase price: $389,000

The property is a bit unique on regards to its layout, but it ultimately has 3 bedrooms and 2 baths. I live in one room and rent the other two out. My rental income contributes 60% of my monthly expenses.

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

I did not want to rent anymore but still wanted to live in the same area. This property was in my price range and I saw potential for growth because of the size of the existing garage.

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

I found it on Zillow and used a real estate agent to see the property.

How did you finance this deal?

I have a conventional 30 year fixed rate loan.

How did you add value to the deal?

I would like to add an additional bathroom, 2 bedrooms, and possibly a small kitchen in the garage to convert it into a mother/daughter style home. I will then rent out an additional 2 bedrooms while still living there.

What was the outcome?

We shall see!!!

Lessons learned? Challenges?

I bought the property using my emotions. I let my desire to buy and stop renting blind me from the numbers... because they clearly do not make for a good investment. I am now trying to figure out how to turn it into one.