House hack near the University of Delaware

[Mario Ciccarelli]

Investment Info:

Townhouse other investment in Newark.

Purchase price: $190,000
Cash invested: $25,000

My first investment, a house hack near the University of Delaware. It is a 3 bedroom 2 bathroom townhome. I live in the master bedroom and have the other 2 rooms rented out ($800/month and $700/month) which breaks even or cash flows $50 depending on utilities.

This house had 2 living rooms when I bought it (hidden bedroom) and I am in the process of converting it to an additional bedroom that will rent for $800/month. Once completed I should cash flow $600 after all expenses and cap ex given the projected rate of expense increase.

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

I needed to get started in real estate investing and knew a house hack would be the easiest way. I used to live in central NJ which is a very expensive market, however I had an opportunity to move to Delaware last year. The company I work for had a small, new office in Wilmington DE. I analyzed the DE market, new house hacking near a university would be effective for rent by room, and pulled the trigger. I moved 100 miles from friends and family to start this journey and I am pumped for more!

How did you finance this deal?

I financed this deal with a 5% down conventional loan.

[Mario Ciccarelli]

Quote from @Brian Tome:

Hey Mario!  How about an update?  I know how awesome this project (and your next) are turning out, but the rest of the folks would probably love to hear it!  You should be on the Rookies Podcast!  Great work, My Friend!

 I need to update my notifications, I just saw this now!

As for a project update; the 4th bedroom has been added and is already leased by multiple parties until summer 2023. I am cash flowing $650/month after all expenses and reserves.

I'm also rehabbing another nearby property that I will either rent traditionally, or to students. The traditional rental has a nice return but my student strategy will produce a higher return, albeit with more work. I will post about that deal in detail once it is finally finished and stabilized. 

I'm also currently networking with hard money lenders, private money, and contractors (all due to my rockstar agent) and targeting a BRRRR property in town. Hopefully I can land that deal soon.

I would love to be on the BP rookies podcast! I listen to it at least once a week!