DPA and House Hacking!

[Elea Reyna]

Investment Info:

Single-family residence buy & hold investment in Greensboro.

Purchase price: $205,000
Sale price: $205,000

This is the first house I bought and my first real estate investment! I worked with the city's down payment assistance program, where I receive $10,000 (forgiven in 5 years) to pay for my down payment and closing costs. Also, the seller agreed to pay for $6,000 in closing costs. Used an FHA loan, with low interest rate, and low down payment. So I purchased this house with $0 out of pocket!!! Which is Amazing!

The house is a 3bd 2.5ba with a ADU with a bonus room (with its own cooling and heating system). I will be house hacking the 3 bedrooms and renting them individually to graduate students! So my mortgage payment, repair and maintenance costs will be covered!

Planning to repeat this process every year! House hacking is the way to go if you are just getting started with real estate!

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

The opportunity of purchasing my first home with $0 down.

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

Through the MLS. I just wanted to make sure I had 3 bedrooms to rent and 1 extra space for myself.

How did you finance this deal?

With a DPA, and a FHA loan.

How did you add value to the deal?

I will be adding a kitchenette and bathroom to the ADU, turning into a small apartment!

What was the outcome?

A free house and a free ADU!

Lessons learned? Challenges?

Persistence is key. In this hot market, houses were sold the day that they were getting posted on the MLS. I made offers to about 10 other houses before getting this house.