Primary Residence House Hack

[James H Webb III]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $179,000
Cash invested: $15,000

Single family house hack! The house had an unfinished basement when I purchased it with a a full walk in closet and full bathroom. I finished the bottom out and now rent it out for $550 a month which covers over half of my mortgage. It has been a great confidence boost to live in a fixer upper and get comfortable with collecting rent, doing renovations, and seeing how a tenant will treat your property. I definitely have learned more than I earned with this one, but the information has made itself so extremely valuable.

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

I wasn't interested in investing at the point of purchase. This property morphed into and investment about a year after the initial purchase once I found BP and heard about "House Hacking"

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

MLS and got $5k off the price through agent negotiations.

How did you finance this deal?

FHA Loan with 3.5% down

How did you add value to the deal?

Finishing the basement and placing a tenant.

What was the outcome?

Over 50% of my mortgage being covered, which allowed me the financial stability to buy the next property!

Lessons learned? Challenges?

Don't wrap emotions up in a home purchase even if its your primary residence. I bit on a high counter when I knew I could get it for less. The agent got me caught up in the hype and I left money on the table...Possibly money that could have allotted me a conventional loan and saved me thousands.