House Hack- Rancho Cordova, Ca

[Katie Phillips]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $345,000
Cash invested: $20,000

I house hack by renting out 2 rooms in my 3bd., 2.5 bath house. I rent one for $925 and the other for $825, leaving me to pay $86 toward my mortgage and $300 in utilities for the master bedroom.

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

Rent prices in Sacramento, Ca can be very high, so I wanted to save money and not have to live in someone else's house. House hacking was a great option for me!

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

I bought the home from my sister and brother-in-law. We did not use a Realtor, so I was able to save 5% of the purchase price. You can easily download purchase agreements online. This is a great option if you trust the seller, but I wouldn't suggest it otherwise. It could be risky!

How did you finance this deal?

It is my first home, so I only had to put down 3% and had to bring in about $10,000 for closing costs/escrow. I went with a conventional, 30 year loan.

Lessons learned? Challenges?

Always talk to prospective tenants on the phone before giving them your address. You live there, so make sure you know who is coming over. It's a mistake I will not make again!