435: Transforming a Risky First Rental Into a Profitable Property by Doing THIS w/Noreen & Derek Eddy

Real Estate Rookie

If you’re holding out for the “perfect” deal, you’ll always be on the sidelines. Today’s guests weren’t afraid to take on a challenge with their first rental property, and it paid HUGE dividends. Not even an expensive market or extensive rehab could stop them from making money and reaching their investing goals!

Welcome back to the Real Estate Rookie podcast! Noreen and Derek Eddy are a real estate investing power couple who took a big risk with their first deal—a distressed, multifamily property that had recently been foreclosed on. To make matters worse, they were forced to turn their renovation project into a live-in flip once their contractor didn’t hold up his end of the bargain. Rather than straining their relationship, this DIY project brought them closer together, and today, the property’s revenue covers most of their mortgage!

In this episode, you’ll learn all about the low-money-down loan you can use to finance your property and renovation costs, as well as a lesser-known strategy you can use to find rare deals in a competitive market. Finally, Noreen and Derek will offer advice on dealing with tenants and how to get along while living under the same roof!

In This Episode We Cover

Whether you should buy a multifamily property as your FIRST investment

203(k) loans explained, their pros and cons, and when to get one

How to cover your mortgage using the house hacking strategy

Finding rare deals outside of the multiple listings service (MLS)

How to become a landlord and what to include in your lease agreements

Why tenant placement is the KEY to a successful house hack

And So Much More!

(00:00) Intro

(00:53) Finding a RARE First Deal

(13:07) 203(k) Loans Explained

(18:28) Investing with Your Spouse

(20:46) Numbers on the Property

(25:29) House Hacking with Tenants

(32:38) 2AM Police Visits!?

(39:11) What’s Next for the Eddys?

(42:43) Connect with Noreen & Derek!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-435

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