$0 Down, 0% Interest, Owner-Financed Live-in House Hack

[Hannah Williams]

Investment Info:

Single-family residence buy & hold investment in Asheville.

Purchase price: $120,000

My husband and I are experiencing a live-in house hack on the home we purchased. We purchased this home as a 100% owner-financed deal with $0 down, live in one bedroom, and rent out one bedroom to reduce our owner-financed payment to under $500/month.

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

The idea of a live-in house hack is not ideal for every situation, but my husband and I are committed to living free in the next few years, so we are renting out bedrooms in our own home. Eventually, we will turn this property into a rental and move again. This type of deal was extraordinarily interesting to us as new investors because it was an easy way to get started AND who could resist 0% interest, $0 down?

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

This deal came through my family's real estate business marketing. We received a call from a gentleman in a bad situation who needed to sell the home he purchased for his son - he was interested in owner-financing and needed out quickly. Because he was only interested in receiving a check each month, we were able to negotiate 0% interest for 120 months.

How did you finance this deal?

100% owner-financed

Lessons learned? Challenges?

So far, we've learned that knowing other investors and being visible in our market is crucial. There is low inventory and hundreds of buyers in Asheville, so staying close to wholesalers has been vital. Also, with a live-in house hack, it's CRUCIAL to find the right tenants - otherwise it can be a nightmare.

[Sam Morgan]

Hi @Hannah Williams

I enjoyed reading your post. I grew up in Asheville, and finally got a house hack in Kenilworth over the summer. The numbers are strong and I am very pleased. Its been incredibly difficult to find rentals that make sense. So much competition in Asheville. Was wondering if you could recommend any wholesalers to me?

I work overseas for months at a time, so it's important that I can return home ready to get under contract quickly so that I can close before leaving again. Without an inside scoop, this short window has been tough to contend with. I am really hoping to find a solution.

Thanks and congratulations,

Sam