“Can you really buy two houses for $100k?”


Invest in real estate without debt, and help create a sustainable housing market


The affordable housing crisis is coming to a head across the country, especially in major metropolitan areas.  With the median house price in SF at $1.3 million, it can feel like it’s impossible to own a house, let alone invest in real estate.  Even a down payment of $100K might not be enough to buy your own home, and it definitely seems like it’s not enough to start a real estate portfolio.  But in Tier 2, Tier 3 cities like South Bend, Indiana, that $100K could get you two, maybe even three houses.

We’re not expecting anyone to uproot themselves and head from the coasts to South Bend anytime soon, but that shouldn’t hold you back from making smart real estate investments in growing cities in the Midwest. And you can start small - really small in fact. For a check that is 10% of the median price for a home in SF, you could make a return of about 10-14% per year for 10 years, while helping build homeownership and fostering community in these cities.

How to invest $100k in real estate in Tier 2, 3 cities

When people think of investing in real estate, they usually think of multi-family developments, new commercial buildings, etc. These sorts of projects require a large cash investment, rely on appreciation, and then a significant amount of debt (with all the burdens that come with it).

On top of that, it may not be feasible to invest where you live - the real estate market in larger cities are increasingly expensive. $100k might be too small of an investment there.That’s where Hurry Home comes in. With us, your investment isn’t small - it’s big enough to buy multiple houses, earn you a competitive return, and also gives people a chance to become homeowners.

With us, you can invest in single family homes - these cash flow investments have a lower barrier to entry, don’t depend on appreciation predictions, and offer truly passive income.

For properties valued below $80k, the typical investment cycle relies on a direct sale to a retail buyer or renting it out through a property manager - these options are inefficient and miss out on a more lucrative, stabler return. This is due to entrenched problems in the housing market, but we’ll get into that later.We help you invest in real estate markets in Tier 2 and Tier 3 cities such as South Bend from your living room. This is how it works:


We help you invest in a single family home valued at $80k or less, and we will match your property with a qualified tenant who wants to live in and earn ownership of the property over 10 years


Hurry Home handles collections, you receive monthly direct deposits, and the tenant handles all maintenance. If they decide to move, we will find you a new tenant at no additional cost


At the end of 10 years, you get the final lump sum amount (20% of the property value) when the property title is transferred to the tenant, bringing your IRR to 10-14%


The buyers, and how you can help build homeownership

It’s extremely difficult to get a mortgage for a house worth less than $80k.  Yet these houses make up nearly 1 in 5 of the stock across the country.  So why aren’t banks interested in helping finance them? It comes down to how banks make money off of mortgages.  The majority of their revenue comes from the fees charged for making (originating) the loan, usually 1% of the total amount.  After that, they typically sell the note to the secondary market (Fannie Mae or Freddie Mac usually) and earn a servicing fee for collecting the payments.  That means their revenue is dependent on the value of the loan, but their costs are fixed. It costs banks the same amount of money (in employee time, paperwork, software, etc.) to make a $50,000 mortgage as it does to make a $500,000 mortgage, but the latter earns them 10x in fees.  In fact, banks often lose money if they make a mortgage below $80,000. As a result, the primary mode to buy these houses is with cash, which isn’t feasible for the majority of working people interested in living in them.

We offer these families a new path to homeownership.  With Hurry Home, prospective homeowners earn equity over time until they own the house fully in 10 years.  We ensure that the house is affordable for them as well by requiring their monthly payment be no more than 30% of their gross income as well as verifying:

  • Income over the last two years

  • Rental payments and utility bill history over the last two years

  • Back-end Debt-to-income less than or equal to 43% of gross monthly income ([Their monthly debt obligations + their housing payment with Hurry Home]/gross monthly income)

  • No evictions, foreclosures, bankruptcies, judgments, or liens in the last 5 years

In addition to offering a family the opportunity to become first-generation homeowners, your investment benefits the community.  Research on homeownership suggests it can lead to healthier families, better educational outcomes for children, and stronger neighborhoods.  By investing with Hurry Home, you are supporting these goals while still making smart gains - it’s truly an opportunity to do well by doing good.

Challenges that minorities face in building homeownership

Re-examining social benefits of home ownership after the housing crisis

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Sitting in the up-and-coming Keller Park neighborhood in South Bend, Indiana, this house has original wood floors and a wraparound kitchen counter.

We have tenants waiting to move in and make this a home. This would be the kind of house you’d be investing in and the impact you’d be creating.


IRR on $100k investment

  • Expected IRR of 10-14% over 10 years. 

  • Monthly supplemental income that is truly passive. 

  • Stable house values

Homes priced below $70,000 have remained stable over the last 10 years; prices remained fairly level even before and after the 2008 recession

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Equity transfer and cash flow generation

Your resident earns equity in the house with every monthly payment that they make.  In the traditional rental model, the owner (you) would be responsible for maintenance, repair, and other capital expenditures.  With us the buyer assumes those responsibilities (with our help), and your savings convert to their ownership over time. This means MORE monthly cash flow for you with no additional expenses and no additional work. 

The resident pays for your house and covers your expected cash flow over 10 years, but we hold 20% of the house value which will be paid at the end of the contract to complete the payment for the house.  That 20% allows us to offer the buyer some liquidity for their accrued equity in situations where they leave the house before finishing the contract. That way, they don’t lose everything they put into the house, without costing you anything.

If that happens and a buyer decides to move without buying the property, we step up to get your house ready to be filled again and find you another qualified buyer at no additional cost.  If you aren’t making money, we aren’t making money.

Learn more about how you can get started with an impactful real estate investment portfolio

Sachin Benny