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All Forum Posts by: Matt Solis

Matt Solis has started 3 posts and replied 57 times.

Post: QOTW: If you had an average income, but don't want to househack..

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48

If house hacking was absolutely out of the question, and I only had 10k to get started, I would look into seller financing. You can get a property with the seller holding the note, and can negotiate the terms much easier than you could with a bank. I’ve heard of investors using this strategy with as little as 3k down to acquire a property. You would need to do a ton of prospecting to find a deal like this, but it wouldn’t be impossible.

Although, house hacking would be much preferred for a beginner. I would say you need about 30k to get started in this market.

Post: My very first house hack!

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48
Quote from @Zierry Eme Carl T. Tagbas:
Quote from @Matt Solis:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,555
Cash invested: $30,000

First house hack! Bought this 4 bed 2 bath for $255,555 (20k over asking). House was rent ready and needed no renovations.

Numbers:

Upfront cash invested: $30k

PITI: $1500
Bills: $300
Reserves: $400

Total monthly expenses: $2200

Monthly Gross rents: $2800

Monthly Cashflow: $600

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

I found the deal on Zillow. It’s in a prime area of DFW, and I knew it would be a multiple offers over listing situation, so I went as far over as my budget would allow. I only beat out the 2nd highest offer by $555!! I had no problems going over listing since I knew it would still cashflow nicely.

How did you finance this deal?

5% down conventional loan

What was the outcome?

$600 a month in cash flow, and a ton equity value due to appreciation.

 This amazing @Matt Solis! Congratulations for you and a successful first house hack! What is your next plan?

The plan is to continue house hacking one home per year. Once I get a decent amount of equity in any of the properties, I’ll refinance the house to leverage the wealth to purchase a rental property in between house hacks. Would like to get into multifamily, and eventually trade up into apartments or other commercial real estate!

Post: My very first house hack!

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48
Quote from @Michael W. McCord:

Good job! You mind sharing which part of DFW?

The home is located in east Plano. The appreciation in that area has been ridiculous. The home is now worth 350k, a 100k increase in value in just one year! 🤯

Post: My very first house hack!

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48
Quote from @Alicia Marks:

Nice work! When and where are you planning to go next?

I closed on my 2nd property last month, currently renovating it. It’s a 4/2 in Arlington that I’m converting to a 6/3! I’m excited to share those numbers once the renovations are complete.

Post: My very first house hack!

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48
Quote from @Joshua Janus:

@Matt Solis This is a great house hack! I do not know the Dallas market but it looks like it takes a room by room situation to make the numbers work due to the appreciation in the area, similar to my market. 


 Absolutely! Renting by the room nets me an extra $600 in gross rents versus renting out the whole house to a single tenant. Basically, I’d only be breaking even if I wasn’t renting by the room!

Post: To permit a bathroom or not?

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48

Hey everyone!


This is my first post on bigger pockets! I just closed on my 2nd house hack and am currently planning renovations. I’m having trouble deciding the best way to go about adding a bathroom to the house.

My question 

Should I use a permit to add a bathroom to my house, or could I get away with doing it unpermitted if I’m confident everything will be up to code?

More Details

The house is an existing 4/2 that I’m converting to a 6/3. Here’s the basic plan:

Project #1 (pictured below): convert the existing laundry room into a bathroom, convert unused space in the shared full bath into a laundry room, add a small hallway to access the laundry room. Only demo involved is taking down one small bathroom closet in the full bath.

Project #2 (not pictured): add a wall in the living room and upstairs loft to add bedrooms #5 and #6.

Currently, the plan is to use a permit for project #1, and do project #2 without a permit. This is because 1) I don’t want the city knowing that I am renting out all of my bedrooms, and adding 2 extra bedrooms is a red flag, and 2) whenever I eventually sell the house, I will remove the living room wall and convert it back to a 4 bedroom house if I need to. Not too expensive to do that. 

Now for project #1, I was planning on using a permit because I want it to be on the tax records when I sell the house as a 4 bed 3 bath house. The idea is to have that 3rd bathroom add value to the house when I sell. But lately I have been having second thoughts about the permits. Here are my reasons:

1) The permits will add about a month of extra renovation time. I’ve heard one horror story of a garage conversion taking a whole year because the city was requiring a whole bunch of stuff to get fixed.

2) The permits add extra costs in general.

3) I have a pretty badly cracked driveway that runs to the back of the house that I’m worried the city will see and make me replace/repair. I saw Craig Curelop’s instagram post recently that the exact same thing happened to him.

4) I don’t believe I would have that much trouble selling the house with an unpermitted bathroom. I would of course disclose it.

5) Not having the city involved ensures they won’t find any other random things that I would need to fix to bring up to code.

Everyone I’ve talked to has a different opinion on the matter (go figure). Some say that they do flips all the time without permits and never have problems, others say it’s worth it to get a permit for later on down the road. My contractor has done it both ways. Anyone have experience with this and can offer input?

Post: My very first house hack!

Matt SolisPosted
  • Real Estate Agent
  • Dallas - Fort Worth Metroplex
  • Posts 60
  • Votes 48

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $255,555
Cash invested: $30,000

First house hack! Bought this 4 bed 2 bath for $255,555 (20k over asking). House was rent ready and needed no renovations.

Numbers:

Upfront cash invested: $30k

PITI: $1500
Bills: $300
Reserves: $400

Total monthly expenses: $2200

Monthly Gross rents: $2800

Monthly Cashflow: $600

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

I found the deal on Zillow. It’s in a prime area of DFW, and I knew it would be a multiple offers over listing situation, so I went as far over as my budget would allow. I only beat out the 2nd highest offer by $555!! I had no problems going over listing since I knew it would still cashflow nicely.

How did you finance this deal?

5% down conventional loan

What was the outcome?

$600 a month in cash flow, and a ton equity value due to appreciation.