Single family househack turned rental.

[Dan Peters]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $126,000
Cash invested: $5,000

Long term househack, fix and flipped into a long term rental.

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

I needed housing and the mortgage here was less than my previous rent.

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

MLS, bank owned, paid the asking price.

How did you finance this deal?

I had no money for a down payment so I defunded a Simple IRA that I had, extracted $5k and used that as a down payment on an FHA loan.

How did you add value to the deal?

Spent years househacking it and slowly updating a very oudated house.

What was the outcome?

It's tripled in value since I bought it, and I now rent it out for 2.5 times the mortgage/tax/insurance cost.

Lessons learned? Challenges?

Househacking is the way in my expensive area (now median home price is over 1 million) and there were actually few challenges. Very lucky timing. If anything it taught me that I need to do this 15-20 more times, and buying during the recession was KEY in the success of this property.