A YOUNG real estate investor has revealed how she plans to make $100,000 by refurbishing a home she bought with just 3% down.
But there is a clever reason the 23-year-old won’t sell the property anytime soon.
Vayna Jerabeck is a real estate investor and wholesaler who makes videos about her job on TikTok (@vay.namae).
In a recent upload, she told her followers about a new home she had just bought in Seattle, Washington for $500,000.
Vayna put just $15,000, around 3%, down on the house.
As she explained, she would invest some extra money into refurbishing the property to increase its value and build equity.
“It’s gonna be about a $50,000 rehab, and then it’s going to be worth $650,000,” she estimated.
Vayna would also keep her housing costs low by “house hacking.”
House hacking is the concept of renting out part of your home while still living there, so tenants can cover the mortgage cost.
“That $100,000 of equity is contributing to my net worth,” she said.
“And then after a year, I’m gonna move out, go by another one, and go do the same thing.”
The process is known as the BRRRR Method – buy, rehab, rent, refinance, repeat.
LET’S GET DOWN
If you want to own real estate but don’t have much money for a downpayment, a Federal Housing Administration (FHA) loan might be for you.
These government-backed loans require a downpayment of just 3.5%.
To qualify, you must to be a first-time buyer.
And you will need to live there for the first year.
But after that year, you can move out and turn it into a rental property.
That’s how many Americans have become landlords just over a year after buying their first homes.
One man in Atlanta, Georgia, followed this technique and got his second property by taking out a HELOC on his first home.
And another young investor doubled his money by renovating a run-down $43,000 property in Texas.