Brand new House Hacker Newport News VA

[Preslie Hicks]

Investment Info:

Single-family residence buy & hold investment in Newport News.

Purchase price: $223,000

This is my first purchase. 4 bedroom 2 full bath single family home, We purchased it because the previous owner had converted the garage. We are house hacking it by renting out the converted garage and we are occupying the main floor. We are saving the rent we are getting from the converted garage to go towards buying another property and doing the same thing with it and then renting out the main floor which will be roughly 700.00 positive cash flow after mortagage and insurances are paid!

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

My original goal was to just simply STOP paying RENT and actually own something. I quickly realized that I could use this property to my advantage by renting the converted garage out as a studio and living on the main floor. Then I realized if I can purchase another property after my 1 yr residence requirement is up I can rent out the main floor of this property and have a positive cash flow rental under my belt!

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

I found this deal one day as I was driving on my way home from work. I saw the for sale sign and called my agent as I was actively looking for a home to buy. It was listed above market value and was able to get the purchase price down by about 10,000.00! The location was ideal and the house had been renovated already.

How did you finance this deal?

I did a FHA loan and took out a second mortgage to cover my down payment so I was able to purchase the house with no money down. I used a mortgage lender who I met through my Financial Advisor that I had just started working with.

How did you add value to the deal?

I replaced the old sewer line and the shed roof.

What was the outcome?

So far I am not sure as its still such a new investment, I am hoping to add a separate laundry and kitchenette to the converted garage so it is a total separate unit and can comfortably rent out both areas of the home in one year without compromising the comfort of future renters!

Lessons learned? Challenges?

I learned from this deal that even though when you start you might just have one thought ( mine was to just stop renting) but you have to keep an open mind because now I will be living in a 4 bedroom house and only paying 265.00 per month by house hacking which was not even a thought in my mind at the time! My only challenge so far was finding a ideal renter to share the house with.

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

I would recommend my agent to anyone in the area Raul Mendez with Caggiano Realty Group has been a fantastic experience and I plan to continue working with him as I hope to purchase 2 more properties in 2020!