First Property - House Hacking

[Shawn Cordes]

Investment Info:

Single-family residence buy & hold investment in Akron.

Purchase price: $50,000
Cash invested: $20,000

1000 square foot single family house with detached garage. The home is completely brick. Went in and updated both the plumbing and electric. The entire house was remodeled. New kitchen and bathroom with refinished hardwood floors throughout the entire home. The foundation has been waterproofed and new downspouts with a direct waterline to the street have been installed.

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

Had the ability to purchase my first property and the deal was too good to pass up. I currently live in the home and house hack it by renting out the spare bedroom. I have not paid the mortgage in the past two years and love it!

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

Passed it driving through the neighborhood. A relative from out of state was selling the home and didn't want anything to do with it. We made the offer based on the condition of the home at the time and it was accepted.

How did you finance this deal?

First time home buyer had the ability to do an FHA loan to make all the repairs and funnel it back into the mortgage loan at the end of construction. We did all the work ourselves.

How did you add value to the deal?

Complete remodel from basement to attic.

What was the outcome?

Home is currently being appraised around $135k.

Lessons learned? Challenges?

Remodeling takes a lot of work, but is worth it in the end.

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

Tina Budimlic - Keller Williams