All Forum Posts by: Devin Gillespie

I used DPA to get started as well and I do not regret it! I used the DPA to buy a Single Family Residence with an ADU. I now live in the ADU and manage the main home as a mid-term rental.

I would understand the stipulations of the program and make sure that it aligns with your strategy. You may have to live in the property for a particular time or be subject to repaying a lien as mentioned. 

Nonetheless I believe that it's a great tool to get started! Account for taxes in your reserves and you're good to go.

Best of luck!

One thing I did underestimate was the property taxes. Also be aware that if you are planning to furnish the rooms and market as STRs, Dallas in particular issues a separate occupancy tax for that. I would look for opportunities to add value and increase your rates, which would help keep you living for cheap or free. Best of luck!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $325,000
Cash invested: $10,000

I house hacked a SFR with an ADU. I live in the ADU, and use the main portion of the home as a Short Term Rental (STR).

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

I truly had a burning desire to get started in real estate, and after weighing a number of scenarios I knew that House Hacking had to be the first move. I went into the home buying process knowing that was exactly what I wanted, as it would allow me live for cheap or free, earn passive income, and learn as I go.

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

I found the home on the MLS. It was listed for longer than usual and were able to negotiate closing costs as well as other contingents.

How did you finance this deal?

I am a full-time teacher, which gave me access to a number of home-buying assistance programs. After some research, I was able to put less than 5% down on a conventional loan.

How did you add value to the deal?

I converted the SFR into a functional duplex.

What was the outcome?

The STR revenue covers the property's expenses.

Lessons learned? Challenges?

The biggest challenge I had to overcome was myself. I had to trust in my plan, and learn to ask the right questions along the way. I bumped my head, but it leaves a mark I'm glad that I have.

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

Daniel Webber - ATX
Jere Becker - DFW

Thank you @Jaysen Medhurst ! I appreciate your input.

Hello BP,

I am house hacking a SFR with an attached ADU. I currently have a tenant in the ADU and will use it as a short term rental when they move out. I have an active LLC that I ultimately plan to transfer my deed to when I move out.

Essentially I would like to inquire if I can/should use my business entity for the property if the home is in my personal name. I’ve been told that I could use the entity and lease through it, but wanted to verify that information and reach out for ways to scale.

Any information helps! Thank you!

This is inspiring! Congratulations!