My First Deal: BRR House Hack

[Elliott G.]

Investment Info:

Single-family residence buy & hold investment in Charlotte.

Purchase price: $135,000
Cash invested: $23,000

Bought a 2br 1b single family house in University Area for 135k. (3.5% down 3.875% intrest) then house hacked the spare bedroom for $650 a month while completing renovations.

Spent 15k Adding a bedroom, bathroom , new roof , paint , etc to the house.

Did a (partial) cash-out-Refinance with the house being appraised at 180k. Which paid me back for the renovations then left eveything else in the deal, brought me up to 20% Equity in the property, dropped pmi and lowered interest to 3%.

I now rent out 2 of the 3 bedrooms for a total of $1,300 a month with a mortgage of $750 per month along with living for free and having over 20% Equity in the property.

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

Starting with little money in hand right out of college

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

Off market deal made directly with the seller. Part of the deal was to include all the appliances in the house and fix eveything needed to have the house move in ready.

How did you finance this deal?

Traditional mortgage from BB&T

How did you add value to the deal?

Doing the renovations myself

What was the outcome?

13k profit , a free place to stay and $350 a month in passive income.

Lessons learned? Challenges?

Renovations take alot longer than expected when dealing with county inspections.