House Hack Rental - 2nd Investment Property

[Andrew Varney]

Investment Info:

Single Family, Buy-and-Hold

Purchase price: $270,000 (refinanced @ $206,000
Cash invested: ~$72,000

Rent: $1975

Expenses: ~$1757 (Conservative with PITI, Repairs, Maintenance,& Vacancy)

CF: %218

My wife and I moved from Seattle, WA to Sarasota, FL in 2018. One of the reasons we chose Sarasota was the potential to buy rentals. As we were looking for our residence, we underwrote everything as if it were a rental, knowing that in 1-2 years, we'd move into something else and turn this into a rental property. Late 2019, we bought a duplex in a nearby neighborhood as a pure investment, while we lived in this one and worked to improve it. In June 2020, we bought a new personal residence and finished the move a couple of weeks ago. I finished cleaning the first property and found a tenant.

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

Sarasota is a hot market with great rents and appreciation (and awesome beaches :-) )

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

We found this remotely while in Seattle. We found a local realtor with great reviews and metrics and had an acquaintance go tour properties with her and send pictures and videos of the properties. We found multiple properties where the numbers worked, but chose this one as it was a little more move in ready for us as we came across country with a 3 mos old.

How did you finance this deal?

Conventional 30yr Mortgage with 10% down.When the rates dropped in 2019, we paid another ~7% and refinanced to drop PMI and get a better rate, the remaining ~3% to drop PMI came from appreciation.

How did you add value to the deal?

It was turnkey, but we did some quality of life updates and repairs while we lived there.

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

Realtor in Sarasota area: Courtney Tarantino