All Forum Posts by: Ben Sorochuk

Investment Info:

Single-family residence buy & hold investment in Anniston.

Purchase price: $615,000
Cash invested: $31,500

My first property was a 7 bedroom househack. I made $1,000+ per month in cashflow while living for free in the house. Currently all rooms are rented (I moved out).

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

Low risk, allows me to live for free and makes managing the property easy when I live there.

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

On market, during covid boom.

How did you finance this deal?

Conventional 5% down

How did you add value to the deal?

Renting it out room by room allowed me to charge about 2x as much rent than if I had just rented out the entire house.

So my problem is the following: I'm a 22 year old engineer in Tacoma WA. I make 100k, have 740 credit score. I bought my first home in April 2022 few months ago as a conventional mortgage 5% primary residence and have been househacking it to the max. It has 5 bedrooms plus 2 rooms that don't have closets so aren't considered bedrooms but im living in 1 and renting out the other 6. Mortgage $3,650/month, rental income $5,100/month. So it's going great, especially since I'm living here too. And I'm ukrainian so our community is well connected and people know what I'm doing so I get someone calling like every 3 days asking if I have any rooms left to rent (I'm all full!). Seeing how much demand there is I've been trying to buy another house and rent it by the room. I'm having trouble getting financing though. I have 70k in savings but a house that would work well would be like 450k in Tacoma. I'm unable to get a conventional investment property loan because it requires 15% down or more, and the 6 months of reserves so like 100k total. Cant get it as a second home because they won't count my househacking "boarder" income. They only count my engineer job income so with the current house my DTI is already high at like 45%. DSCR loans all require 20-25% down. Any advice on how to get funding? Family members/friends either don't have money or too scared of risk to lend me like 50k or coinvest. Seller financing is hard to persuade. Just seems like I'm bottle necked. I feel like I could grow a lot if I could get funding. Can't cash out refi my current home, I just bought it and it's got only 5% downpayment equity. Do you think i could get approved for some type of loan to get a deal done without waiting a over a year to save money and build equity in my primary residence? I'm okay with paying a bit higher interest rate, just don't want to pay something crazy like 10%. I can refinance into a conventional investment property loan in like a year anyway after I build up some savings. Do you have any good mortgage broker recommendations?

It would be catered to students of UW Tacoma, or other single people who want a cheap roommate type of living situation.

I've got my first house a few months ago, and currently househacking it. It's going great, it's got 7 rooms. I'm living in a room and renting out the rest. Mortgage: $3650. Rent income: $5100. I'm seeing other houses that have a lot of rooms relative to the square footage, like houses that are 2000 sq ft and 7 rooms and considering buying more houses and renting them out by the room. If I rented the house to a single tenant I'd get maybe $3000/month. If I rented by room I could get $6000/month. Obviously I will have to manage more tenants and deal with more short term type tenants but it seems like a slam dunk home run. Is there a reason this isn't done as frequently? Obviously it's more involved but the way I see it, if I buy multiple properties and rent out each entire house to a single tenant, I'll basically have to deal with more hassle when I could get comparable cashflow with just one property that's rented by the room.