House hacking my way through a steep market

[Jacob Kordich]

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $462,000
Cash invested: $18,823

I bought this property last year, June of 2019. The goal of this purchase was not to hit a grand slam, but simply get my feet wet with the process. I was also extremely tired of paying rent. The lender was able to offer me a 3% down conventional loan. I could not pass the opportunity up to begin my investment journey. It has been working fine as a house hack, just about breaking even on the mortgage payment from my renters. On to the real thing now.

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

My money vanishing with each rent payment

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

Used an experienced realtor in locating the best up-and-coming transitional neighborhood in the Denver area. She also happened to be a great friend.

The lender was also a great friend who helped pull a few strings on the loan structure.

How did you finance this deal?

3% down conventional loan, refinancing after one year

How did you add value to the deal?

To be honest, this purchase was more for experience and experimentation.

What was the outcome?

No cash flow, but breaking even on the mortgage payment which I will absolutely consider a win.

Lessons learned? Challenges?

Before I began listening to Bigger Pockets last year, I had no understanding of how possible it truly was to take the plunge. People would always tell me that you needed a lot of money to invest in real estate, that you needed a large down payment, and the entire idea just sounded rather intimidating. Reading about house hacking in Set For Life really opened my eyes to the opportunities I was missing. It truly changed my perspective on everything, not simply real estate, but life in general.

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

Great friend - Kelly VanHee - Broker Associate at Slifer Smith & Frampton in Vail, CO. - prior to this was with Madison Properties in Denver, CO.

Another great friend - Matthew Sprenger - Lender and Owner at Security Mortgage Inc.