First Real Estate Purchase/House Hack

[Collin Blackburn]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $395,000
Sale price: $469,000

First RE purchase ever. House Hack. Rented out the other bedrooms and the rent covered the mortgage.

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

I was signing my first ever rental lease and wondered how much the landlord was making off of me and my friends. I looked up the price of his property/estimated mortgage and decided I never wanted to rent again! As soon as my lease was over I bought my first house and rented the other bedrooms.

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

This deal was on the MLS. We offered list price and negotiated some repairs.

How did you finance this deal?

VA Loan

How did you add value to the deal?

The property was turn key.

What was the outcome?

I sold the house for a nice profit a few years later when I got stationed in Virginia. I never cash-flowed on the property, but the rent always covered the mortgage. I got to live for free for a few years, pay down the debt, and then sell for a nice profit!

Lessons learned? Challenges?

I learned how drastic of an effect offsetting my housing expense had.