Meet our wonderful client and fellow house hacker, Tomas! We’re excited to share how he managed to not only get his first investment property, but cash flow on it year 1!
Game Plan
- Purchase a MFR, live in one unit and rent out the others
- Decrease cost of living in the Bay Area
- Build wealth through appreciation
- Cash-flow or break even once moved out
Finding The Right One
After submitting a couple of offers in a competitive market, Tomas’s offer on a move-in ready duplex in Oakland was accepted on 6/17/2021.
Numbers Deep Dive
Let’s start with the basic numbers to purchase the property. Tomas purchased his home for $868,200. Since this was his primary residence (aka owner occupying the property), and he qualified for an FHA loan (3.5%) his down payment was fairly low ($30,387). David Greene Team rockstar agent, Steven, used his exceptional negotiation skills to get our buyer $25k in seller credits! In the end, Tomas only came out of pocket $25,387 for this property!!
Next comes the expenses. Tomas accounted for the total monthly expenses being around $5,721. With house hacking, he knew that the tenants would help pay a large sum of that every month.
Now on to the most exciting part! By renting out each of the units individually, Tomas was able to bring in a total of $6,850 each month. By being flexible and trusting the process, he was able to cash flow $1,129, year 1 of owning his property!
Final Takeaways
Although Tomas had reservations about house hacking, by trusting the process and working with the right team, he was able to find the deal of the century! Congrats Tomas! Steven Lam and The David Greene Team can’t wait to help you do it all over again!
