All Forum Posts by: Matthew Harbeson

Thanks, Eric!  Tequesta, actually.  Yea, should rent very well and even could do a seasonal rental,. if I wanted after a year or two.  No plans to house hack right now. My parents like to come down and visit me :) 

Investment Info:

Townhouse buy & hold investment.

Purchase price: $515,000
Cash invested: $100,000

Bought this single family townhouse as my primary residence after trying to buy for about a year. With interest rates going up and not liking other places, I had to go a bit higher on my budget >$500k and put more down (20%) for a really nice townhouse. I love the area and think the area will only continue to appreciate being near the beach and Jupiter, FL, a highly desirable area. This investment is a straight buy and hold play, as my primary residence. I might rent it in 3-5 years.

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

Great location and needed a primary residence. Also a great long term hold for possible rental.

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

I had used an agent who was local and an investor himself.

How did you finance this deal?

Loan - I took a loan from my dad to come up with the part of $100k for the downpayment.

What was the outcome?

Paying a little more than I wanted in monthly mortgage, expenses - buty with minimal work needed and newer condition I think in the long run with interest rates going up and rents continue to go up this was the best situation and I've very happy.

Lessons learned? Challenges?

Keep going and don't give up. It took me almost a year and a half to find a place and it finally worked out. Also, sometimes you need to be honest with yourself about what you really want and the tradeoffs you are okay with on lifestyle, location, and paying a bit more. In my case, I'm not saving as much as I could of with multifamily or cheaper place, but I'm extremely happy in my house, neighborhood, and location. If I ever rent this place out, it will rent super easily for top dollar.

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

Yes I worked with great local Jupiter agent at Waterpointe Realty.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $515,000
Cash invested: $100,000

Bought this single family townhouse as my primary residence after trying to buy a MFU for about a year. With interests rates rising and not finding anything I liked or in areas that I wanted to live, I went a little bit higher on my budget >$500k and put more down (20%) for a very well kept townhouse. I love the area and think the area will only continue to appreciate being near the beach and Jupiter, FL, a highly desirable area. This investment is a straight buy and hold play, 5-7 yrs as my primary residence.

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

Great location and needed a primary residence

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

I had used an agent who was local and an investor himself.

How did you finance this deal?

Loan - I did take a loan from my dad to come up with the $100k for the downpayment.

What was the outcome?

Paying a little more than I wanted in monthly mortgage, expenses - buty with minimal work needed and newer condition I think in the long run with interest rates going up and rents continue to go up this was the best situation and I've very happy.

Lessons learned? Challenges?

Keep going and don't give up. It took me almost a year and a half to find a place and it finally worked out. Also, sometimes you need to be honest with yourself about what you really want and the tradeoffs you are okay with on lifestyle, location, and paying a bit more. In my case, I'm not saving as much as I could of with multifamily or cheaper place, but I'm extremely happy in my house, neighborhood, and location. If I ever rent this place out, it will rent super easily for top dollar.

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

Yes I worked with great local Jupiter agent at Waterpointe Realty.

thanks for posting this, @Giovanni Mazzeo. I'm in very similar position as you looking at a buying a multi-family property for primary in the next few months in South Fl area. Don't have much insight to your questions but I've been targeting more north between Delray and West Palm (like Boyton Beach) and haven't seemed to find many MFUs under FHA limits that don't need a good amount of upgrades and area in neighborhoods that meet my criteria. I don't mind doing upgrades and a little BRRR-ing, though, was part of my plan. Because I haven't seen many MFUs I've started considering buying a single family 3/2 and making it two units (where legal) and making a 2/1 and 1/1 and either doing short term or long term rental. Best of luck! Deals are out there, I'm sure you'll find a good one, stay persistent and keep learning! Cheers.

Matt 

That's awesome, Mel! Congrats and thanks for sharing! 

Investment Info:

Townhouse buy & hold investment.

Purchase price: $631,000
Cash invested: $76,500

Primary Residence - single family rowhouse purchased in April 2020. 3 bedrooms / 3 bathrooms, 1750 sq/ft.

Purchase Price: $631,000
Down payment: $49,900
Monthly cost (PITI): 3,185/month
Total renovation cost: $26,600
Total cash invested: $76,500
Monthly cost (PITI): $3,185 < refinanced to $2,941/mo in Oct. 2020

1 Roommate: $950/mo

Total monthly expense: $2,371/month (includes maintenance, reserves & utilities)

Plan to rent out in June 2021 for $3000/mo.

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

House Hacking & DC market appreciation

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

Redfin. Escalated in very competitive market. Only got it bc other buyers backed out due to COVID craziness.

How did you finance this deal?

30 yr fixed, conventional loan. 6.5% down.

How did you add value to the deal?

Renovations included: upgrades to basement bedroom, upgraded kitchen, renovated master bathroom, new roof, upgrades to plumbing, and electric.

What was the outcome?

This was my first deal and there were a lot of lessons learned about buying an older house and doing renovations. Very frustrating at times but have seen huge appreciation and know the sweat equity will pay off.

Lessons learned? Challenges?

So many lessons learned. Biggest thing was how to work with/screen contractors (went through about 4) and if you're going to do a bunch of renovations don't try and piece meal projects; try and finish one room or area/floor together. Spend the time and effort to find a good contractor team and work with them. Don't always go with the cheaper option and have a flexible budget for renovations bc things will inevitably come up when working on older houses.

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

Russell Brazil - super dialed in with the DC market and a great negotiator.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $631,000
Cash invested: $76,500

Primary Residence - single family rowhouse purchased in April 2020. 3 bedrooms / 3 bathrooms, 1750 sq/ft.

Purchase Price: $631,000
Down payment: $49,900
Monthly cost (PITI): 3,185/month
Total renovation cost: $26,600
Total cash invested: $76,500
Monthly cost (PITI): $3,185 < refinanced to $2,941/mo in Oct. 2020

1 Roommate: $950/mo. lower rent due to COVID

Total monthly expense: $2,371/month (includes maintenance, reserves & utilities)

Plan to rent out in June 2021 for $3000/mo.

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

House Hacking & DC market appreciation

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

Redfin. Escalated in very competitive market. Only got it bc other buyers backed out due to COVID craziness.

How did you finance this deal?

30 yr fixed, conventional loan. 6.5% down.

How did you add value to the deal?

Renovations included: upgrades to basement bedroom, upgraded kitchen, renovated master bathroom, new roof, upgrades to plumbing, and electric.

What was the outcome?

This was my first deal and there were a lot of lessons learned about buying an older house and doing renovations. Very frustrating at times but have seen huge appreciation and know the sweat equity will pay off.

Lessons learned? Challenges?

So many lessons learned. Biggest thing was how to work with/screen contractors (went through about 4) and if you're going to do a bunch of renovations don't try and piece meal projects; try and finish one room or area/floor together. Spend the time and effort to find a good contractor team and work with them. Don't always go with the cheaper option and have a flexible budget for renovations bc things will inevitably come up when working on older houses.

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

Russell Brazil - super dialed in with the DC market and a great negotiator.

Investment Info:

Townhouse buy & hold investment.

Purchase price: $631,000
Cash invested: $76,500

Primary Residence - single family rowhouse purchased in April 2020. 3 bedrooms / 3 bathrooms, 1750 sq/ft.

Purchase Price: $631,000
Down payment: $49,900
Monthly cost (PITI): 3,185/month
Total renovation cost: $26,600
Total cash invested: $76,500
Monthly cost (PITI): $3,185 < refinanced to $2,941/mo in Oct. 2020

1 Roommate: $950/mo. lower rent due to COVID

Total monthly expense: $2,371/month (includes maintenance, reserves & utilities)

Plan to rent out in June 2021 for $3000/mo.

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

House Hacking & DC market appreciation

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

Redfin. Escalated in very competitive market. Only got it bc other buyers backed out due to COVID craziness.

How did you finance this deal?

30 yr fixed, conventional loan. 6.5% down.

How did you add value to the deal?

Renovations included: upgrades to basement bedroom, upgraded kitchen, renovated master bathroom, new roof, upgrades to plumbing, and electric.

What was the outcome?

This was my first deal and there were a lot of lessons learned about buying an older house and doing renovations. Very frustrating at times but have seen huge appreciation and know the sweat equity will pay off.

Lessons learned? Challenges?

So many lessons learned. Biggest thing was how to work with/screen contractors (went through about 4) and if you're going to do a bunch of renovations don't try and piece meal projects; try and finish one room or area/floor together. Spend the time and effort to find a good contractor team and work with them. Don't always go with the cheaper option and have a flexible budget for renovations bc things will inevitably come up when working on older houses.

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

Russell Brazil - super dialed in with the DC market and a great negotiator.

@Cassidy Burns Great post and so cool to see your success househacking! 

Just curious for a first time buyer/investor what do you recommend for a good house hacking property in DC? 2/2ba condo? move in ready rowhouse Or renovate/upgrade?   

Any areas neighborhoods in particular you like? thanks!