House Hacking with SFH - More to Come!!

[Lesli Dixon]

Investment Info:

Single-family residence buy & hold investment in Baltimore.

Purchase price: $200,000
Cash invested: $18,000

House hack-primary residence configured for a walkout basement rental. Used a 203K streamline loan to get home up to rental code and address maintenance issues. Initial cash outlay was about $18K, the rehab loan added 26K to our 200K mortgage. Completing kitchenette w/appliances added an additional $5000 expense to investment. SFH fully furnished bsmnt studio rental available for short-term lease (traveling nurses/professionals, AirBnB, students) starting 8/1/21 btwn $800-$1000/mo or $40/night.

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

I'd purchased a multi-family in SE, DC in 2004 and the rehab required a near full gut. It was an arduous journey. It was meant to be a buy/hold/rent but due to various circumstances (read: lessons), I sold it a year later at around a 28K profit - if I remember correctly. I wanted to start slow getting back into investing and felt a SFH would give us (I got married) a bit more wiggle room, and practice, by using our basement as our first rental and moving forward with other SFH rentals from there

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

As a Realtor I had an auto-alert. But ironically, my husband was browsing Zillow the day it came on market (w/i 5 hours of posting) and it fit all our criteria. I called the listing agent and forwarded an "as-is" offer with inspection contingency. The photos were gorgeous and it was in a good location, but as a "sight unseen" prop I added the contingency to protect us from any unknowns, including if we just didn't like it! We saw it the next day and were sold - pending inspection of course!

How did you finance this deal?

FHA 203K and cash for Settlement and prepaids was from Savings.