1st House Hacking Investment

[Brennan Bogdanovich]

Investment Info:

Single-family residence buy & hold investment in Roswell.

Purchase price: $405,000
Cash invested: $35,000

Bought my first real estate property by utilizing the house hacking strategy! Have been renovating since January 14th and just secured my first tenant. I am in the process of looking for 3 more. Excited to see the benefits of principal pay down, depreciation, cash flow, and appreciation. Now it's time to start saving money and do it again!

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

I took David Greene's advice and was looking for ways to find value. This property was advertised at a square footage below the actual. Using the house hacking strategy, I was able to get a 5% conventional mortgage with a 2.625% interest rate, which is also a huge plus versus putting 20% down.

How did you finance this deal?

5% down conventional mortgage rate. I was able to find an investor who helped with renovations and signed as a non occupant co-borrower on the deal for a share in the profits.

How did you add value to the deal?

Renovated the property by putting in new floors, paint, back deck, gable, sink, faucets, etc. This will hopefully allow me to get another appraisal in a few months and appraise out of PMI.

Lessons learned? Challenges?

A challenge so far has been finding roommates. I am thinking the difficulty is because it is an odd time of the year for people to be moving.