Investment Info:
Single-family residence buy & hold investment.
Purchase price: $155,000
This is my primary residence, 3 bedroom 2 bath. I purchased the property in 2014, and began House Hacking it well before I knew what Bigger Pockets was! I have had mostly 1 roommate at a time, although there was once a family of 6 (Mom, dad, and 4 Kids) living with me (TOTAL NIGHTMARE). Home was purchased as new Construction on VA Loan (0 down!) I have since refinanced it for better APR, lower payment etc. If I were to move out, it comps for rent just under $1500/month.
What made you interested in investing in this type of deal?
I was moving from Hawaii to North Carolina, found an agent out here (before I became one) and was just looking to rent, they didn't really understand investment properties, but brought up the point that I was just paying for someone elses house if I rented. So I decided to pull the trigger and buy my own.
How did you find this deal and how did you negotiate it?
Found it online. Was on the market for over 100 days, new construction in a new subdivision. I offered asking price, 5k in seller concessions, stainless steal appliances, and add a fence.
How did you finance this deal?
VA Loan ( I actually put 5% down even though I didnt need to)
How did you add value to the deal?
Only thing I have done is add a shed in the backyard with electric to it, and a patio.
What was the outcome?
Currently House Hacking it. Mortgage is 1007/month. 1 room is being rented out for 750/month.
Lessons learned? Challenges?
Choose your roommates wisely, and dont rent to friends. (that was the family of 6) They completely destroyed the carpet and walls in the spare rooms. Had to do some drywall work, replace a toilet because they broke the bowl, and pay for a 2 day deep clean because it was trashed. At the time I was working about 100 hours/week so I was never home to actually see it. Bad decision to rent to them. Current tenant is hyper OCD about cleanliness.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I purchased the property with an agent, who passed me off to their daughter who was brand new in the business. I was 24 when i bought the home, and literally did all of the negotiations myself, not knowing what I was doing because she was so inexperienced. I have since got my License and am crushing it while still serving on active duty.