Suburb house-hack in Westminster, CO - private basement suite

[Zane Zeman]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $470,000
Cash invested: $25,000

House-hack for now, purchase as primary, 1 tenant in private basement covering majority of mortgage.

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

Subsidized rent, decrease cost of living.

Opportunity for strong cashflow after moving out by renting basement and main floor separately.

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

Zillow

How did you finance this deal?

Conventional Loan, HELOC for down payment and renovations.

How did you add value to the deal?

Sales comps in surrounding areas and rental comps for 2bd 1bath's in area. Found it hard to analyze value of house hack, will be able to better value when entire property is rented. Expecting ~$1.5K cash flow.

What was the outcome?

Achieved goal of finishing renovations and getting lease signed by first mortgage payment. So far so good.

Lessons learned? Challenges?

I saved thousands of dollars by getting multiple quotes and managing the project myself. This also required a lot of time and effort on my end. Once I get better at analyzing deals I'll probably do less project management to put my time/energy elsewhere.