House hacked my personal residence

[Christian Anderson]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $425,000
Cash invested: $550,000

House hacked my personal residence with a 3 bedroom 2 bath ADU in the basement with it's own entrance. Added a 2 car garage with a studio apartment. It is now a 6 bedroom 5 bath home with an attached 4 car garage and studio apartment.

What made you interested in investing in this type of deal?

This is the second Multigenerational home I have hacked. I needed a place for my kids and grandkids so they wouldn't move out of State.

How did you find this deal and how did you negotiate it?

I found it on the MLS and unfortunately there was little negotiation on the deal. It was the right layout for the hack so I paid market value for it. This is the first time I've paid market value for a house in 15 years, but when it checks the boxes you do it.

How did you finance this deal?

Private money lender until I sold the home I was in. I then paid off the private money loan. The home is paid for, no loan or HELOC. I wish I could pull a HELOC but my Better Half says "NO" so I say "yes dear".

How did you add value to the deal?

Adding an ADU with separate entryway, and attaching a 2 car garage with studio apartment.

What was the outcome?

I paid market price in 2020 of $425,000, put $125,000 into it and it is now worth $675,000-$700,000. Property values here are going up .5-1% a month.

Lessons learned? Challenges?

It always costs more, and takes longer than you think it will to do rehabs. Challenges would be the cost of everything because of Covid!!!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Christian Anderson is a GREAT Realtor in Northern Colorado!!