Real Estate Investing with Coach Carson

#360: I Made $385k from One Rental – Here's How!

Sep 9, 2024

Discover the inspiring journey of house hacking a four-plex that led to an impressive $358,000 gain over 18 years. Learn about the creative financing strategies and relationship-building with lenders that paved the way for success. Unpack the transformation of a distressed property into a profitable rental, including key renovations and management insights. Delve into financial returns, analyzing cash flow, appreciation, and future projections of the investment. Perfect for those eager to explore real estate opportunities!

33:29

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Quick takeaways

Leveraging relationships and financing options was crucial for transforming a distressed 4-plex property into a profitable rental investment.

Conducting thorough financial analysis over time helped navigate challenges and identify the potential for substantial returns on the property.

Deep dives

House Hacking Journey

A house hacking strategy was implemented by purchasing a four-unit building at a significantly reduced price from a local bank. Initially vacant and in disrepair, the property offered substantial upside given its proximity to Clemson University and the potential to attract students as tenants. After negotiating a final purchase price of $70,000 through a local bank, the speaker used a combination of bank financing and private lending to cover renovation costs. This approach showcased the importance of leveraging relationships and understanding local real estate dynamics to optimize investment opportunities.

House Hacking Journey: From Foreclosure to Investment Success

5min

Navigating the Journey of Real Estate Investment and Profit Analysis

29min

⭐ Join Rental Property Mastery, my community of rental investors on their way to financial freedom: http://coachcarson.com/rpm

🎙️ Episode #360 – This 4-plex I househacked at 26 was my first major investment. I'll share how I secured financing, made improvements, and navigated the ups and downs of management. Finally, I'll break down how exactly I made $358,000—not from cash flow!

▶️ Next Episode: How Much Tax I Paid When I Sold a Rental Property

https://youtu.be/SgNXl8eqa2U?si=0TlCsQMqIDJ1uhsD

📄 Show Notes: https://www.coachcarson.com/househackinganalysis/

🎬 Timestamps:

00:00 - Intro: Living Almost for Free at 26 Years Old

00:53 - Where I Got the $$$ for my First House Hack

06:42 - $0 in with the BRRRR Strategy

09:01 - Breaking Down the Numbers (Cash Flow)

15:27 - Tracking the Appreciating Value of the Property

18:06 - Breaking Down the Numbers (The Return on Value)

22:17 - Analyzing the Internal Rate of Return (IRR)

27:12 - Forecasting the Property's Future Cash Flow