Tiny House Hack - My First Investment

[Noah Thacher]

Investment Info:

Single-family residence buy & hold investment in Richardson.

Purchase price: $340,000
Cash invested: $70,000

This is my first real estate investment and it is also my personal residence. When we purchased the property the previous owners had finished out a tiny house in the back yard. We have been able to turn that into a long term rental and help cover our mortgage. Whether it is a roommate or a stand alone unit, house hacking really is a great way to begin the real estate investment journey!

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

I've always been fascinated with Tiny Homes, the efficiency of space and minimalistic concept is amazing. While we were looking to purchase our first home, this house with the tiny home was on our radar. We loved the house and honestly the tiny home was a bonus. We used it as a home office for a bit but then decided that it would be great to generate some extra income to help with the mortgage. We love our tenant and it has worked out great so far!

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

Through an agent and the MLS.

How did you finance this deal?

A conventional loan w/ 20% down.

How did you add value to the deal?

Thankfully most of the work was done for us, we just needed to execute and find the right tenant.

Lessons learned? Challenges?

The biggest lesson learned has been the power of house hacking! It is such a great way to get the foot in the door with real estate investing while also building community. We have loved getting to know our tenant and have been thankful with the extra help on our mortgage.