All Forum Posts by: Alejandro B Yoon

I've househacked twice at 22 years old. 

First property cashflows, I live nearly for free in a more expensive city. 

Definitely still works.

CASHFLOWS DAY 1 with Multiple rental strategies. $600 a month in cashflow!

COMES FULLY FURNISHED and CLEAN

$61,800 ENTRY + CC

5% interest, 5 year balloon 

Estimated PITI is ~$1,800

3 bed/ 2 bath 1,014 sqft

Price: $309K

DM FOR MORE INFO

Call/Text/DM 512-516-7980 for more info Alejandro Yoon - #770473

Come check out this amazing price, blank slate flip in Morgan's Point Resort, TX (76513). property is to the studs with new plumbing, ready to be built. Minutes from the beach with plenty of strong comps. Also has large extension. 1700 sq ft with potentially adding 400+ sq ft. Details below

-3 bed, 2 bath, 2 car garage

-Very low price point $159,000

-0.5 Acre corner lot. Beautiful curb appeal

CALL or TEXT (808)-260-0948 for more infoTX #770473 | AURUMYS Brokerage #9014991

Seller Finance Deal With only 3.25% interest in South Austin. 7 miles from downtown.

Looking for your next rental? Well, this is the one! 3 Bed 2 Bath 2 car garage. New Roof, Concrete driveway, windows, flooring, paint, and more. Rental rates are showing $2,000-$2,100 Cash to close $45k Call me for more details.

(808)-260-0948

Alejandro Yoon # your number Aurumys: #9014661

You need to be more creative to make your numbers work if you are buying on the MLS. Rent one side of the home by the room, STR, MTR, build an additional room to increase rent, store an RV in the backyard, etc. These will all increase cashflow, but will require more management by you.

It's very difficult to find home runs with current rates and prices. As others said, it isn't a bad thing to be cashflow negative for a year or two while rents continue rising. You still get principal paydown, tax benefits, and appreciation. Just be calculated and make sure you don't strangle yourself.

Otherwise buying off market will be your best option, but buyer beware and you need some more money to take over a decent sub-to deal or utilize a hard money lender. My recent sub-to deal blows my Househack MLS deal out of the water. Keep us updated! Big progress seeing you are prequalified.

I faced the exact same decision recently. I also bought my first house hack in May 2023 and it has been a similar success. From a risk standpoint, house hacking is the smarter/safer decision. You already have done it before, and will be more experienced in finding another home to add to your stack.

The current interest rate environment sucks for BRRR'ing. I was under contract for a 6 unit and had my core 4 laid out to BRRR and hold. As I kept running numbers I realized that the HML holding costs were going to kill me as I renovated the property and leased up. I would've probably broken even, and in my mind it wouldn't be worth the 100+ hours of work in between. Your deal may be different and work, but be very cautious.

What I ended up doing is finding a SFH deal sub-to and buying it. I am almost done renting it out and it's going to cashflow $400-500 a month with a 4.38% loan. I'm also going to see if I can house hack again this May when my seasoning period ends for a primary loan.

Not a red flag, usually this means the owner didn't have the property for very long, or are just lazy.

I would try to squeeze the agent to ask if the seller can provide a list of improvements made on the property over their ownership if any. Highly recommend getting additional inspections (termite/mold/foundation/roof) if needed to assess the condition. 

The fact there is no disclosure should justify for a longer inspection period.

Investment Info:

Single-family residence buy & hold investment in Austin.

Purchase price: $320,000
Cash invested: $45,000

Off Market Sub2 3 bed 2 bath property with additional garage conversion in Austin, Texas. 40k entry, 280k remaining loan balance secured a 4.38% rate. Loan matures in 2052. I have a 5 year balloon (Feb 2029) to refinance to take the loan off of the seller's credit. Seller wanted to dispose property off market since there was a murder in the home in 2019.

Home overall is relatively turnkey, Previous owner built a custom deck in the backyard, installed new countertops, HVAC 2020, Roof 2019.

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

I didn't want to wait to buy another home with a primary home loan. Also a 20% down loan in Austin, Texas with higher rates wasn't appealing or would make sense. I was hunting for deals for around a month or so with only 43k cash.

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

The seller is an alumni from my college (20 years older than me). I met found his website and he had a few deals he was selling, I spoke to him and found out he was in a cash crunch to finish up some spec homes in San Antonio he was working on. He has a portfolio of 100+ homes, with the adjustable rate loans killing him. Was motivated and wanted to close quickly. I negotiated from a 50k entry fee to 40k.

How did you finance this deal?

Only my own cash. I am an aggressive saver and the stock/crypto market had been doing well since I was buying last year after my first Househack.

How did you add value to the deal?

Improvements to be made within the first year after property stabilizes with tenants is gutters

The loan that I am assuming (4.38%) has tremendous value, I will be barely cashflowing, but my return on equity from principal paydown is some 12%+. I also will be renting by the room, to make sure I am cashflow positive while I own the home. I am very bullish on the Austin, Texas market for the future, I plan to continuously improve the home and eventually pull out equity during the next boom cycle.

What was the outcome?

This home is now a rent by room rental, creating significantly larger cashflow and allowing me to sleep on the couch when I visit Austin every few weeks. Projected rental income is around $2,850-$2,950, with current PITI at $2,277. After utilities, net cashflow will be around $200-$300 a month.

I currently have the place clean and furnished, I have 2 leases signed, with 2 additional rooms waiting to be rented. I am very confident it will be fully leased within the next week.

Lessons learned? Challenges?

Never stop looking at deals, I made lowball offers on two other homes off market before I got this one accepted. I spent many hours on those homes/apartments doing my due diligence, only to have the seller say no and accept someone else. It can be frustrating, but the practice had made me faster and more efficient in underwriting a deal.

I don' t see a need to purchase more homes, I plan to have my next deal be a 5+ unit property.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A. I represented myself and had an attorney create the contract. Nothing special.

I bought my first house-hack in May this year, 3 days before graduating from college. I just turned 22. I don't have a cosigner and saved all of the money myself. It has been extremely successful as I am now getting PAID $200 to live in my home. It's a bit crowded but I knew what I was getting myself into.

From the massive increase in savings with my job I plan on buying another by May/June of this year. I don't know your specific market, but PM if you have any questions. 

Hi Neal, I worked for a property management firm that rented only by the room in Austin, I was managing 192 units. 

I now househack and rent every room (in Houston), and I manage some family rentals that rent by the room. PM me and we can talk more about it. It is very lucrative but requires more management.