House-Hack: Conshohocken Single Family

[Pete Winslow]

Investment Info:

Single-family residence buy & hold investment in Conshohocken.

Purchase price: $375,000
Cash invested: $13,125

4 Bedroom/2 Bathroom 2,000 sq ft. house. Built in 1919 and when I purchased it was the first ever sale of the property. One family lived in the home for almost 100 years and they took amazing care of it. I currently live in the old study which is a 10'x9' room, but allows for the most cashflow. Once I move out and rent my room as well I will be cashflowing over $1000/month!

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

I was tired of paying rent and wanted to get into the real estate game by learning how to be a live-in landlord. I am using the house hack strategy so I looked for houses with 3+ rooms and high square footage to get a great deal. I am now living for free and planning to do the same thing again soon.

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

I was searching zillow for a couple months prior to even touring a house. This one caught my eye but was way out of the price range. I toured the house and fell in love with it and was able to negotiate the seller down $110,000 from the original asking price!! I was able to negotiate her down so much by sharing that this was the most that I could afford, but I really wanted to continue to take good care of the house.

How did you finance this deal?

I had some savings, but as I was less than two years removed from college I did need help from my father. He lent me money to help with the down payment and closing costs which I am repaying with the money I have been saving on rent every month.

I got a First Homebuyers loan from my lender for 3.5% down and an interest rate of 4.25%.

How did you add value to the deal?

I added value to the deal by being the live-in landlord. I am in charge of finding qualified tenants and ensuring that all operations run smoothly within the house. I also added the sweat-equity by doing all the renovations myself. I took down old wallpaper, repainted, refinished hardwood floors, among other projects. I have never done any of these projects before so I took the time to learn how to do them from Youtube.

What was the outcome?

The outcome of the deal is that I am now living expense free and loving it so much that I am looking for my next deal in the area. I am cash-flow positive every single month and making enough that I can roll all the profits into the down payment for my next home.

Lessons learned? Challenges?

I have learned the lesson of finding the right tenant. I require background checks for all tenants and will not just take the first person who comes along.
I have also learned how to do projects on my own. I feel confident trying new projects in the house and am looking forward to learning even more.

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

Yes, I worked with Jill Barbera who is an agent in the Conshohocken, PA area.