Townhouse to Room Rentals

[Hadiya Coppedge]

Investment Info:

Townhouse buy & hold investment.

Purchase price: $266,747
Cash invested: $8,343

3 bedroom 2.5 bath townhouse
1400 sq feet
Small fenced backyard
HOA $145 a month

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

I started the purchase on a 3 bedroom 2.5 bath townhouse in my home town of Richmond, Va July of 21. I live in California. Originally I purchased this townhouse to own a piece of real estate close to my family. After listening to Bigger Pockets' Podcast, the name of the guest escapes me, I decided to house hack and rent my rooms to travel medical professionals.

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

The seller paid $8K in closing cost because it's a new construction.

How did you finance this deal?

Conventional Loan

How did you add value to the deal?

Originally I purchased this townhouse to own a piece of real estate close to my family. After listening to Bigger Pockets' Podcast, the name of the guest escapes me, I decided to house hack and rent my rooms to travel medical professionals. Because I chose not to rent the entire unit, but instead break each room up into it's own unit, I increased my monthly cash flow from $200 per month (entire unit rented) to $700 a month when all units are rented.

Lessons learned? Challenges?

The biggest challenge in the month I have been operational is finding more than one source of leads. I've joined a website that list housing exclusively for travel medical professionals. They are a fair amount of leads, but I would like to add another lead source.

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

NO

[Julian Gonda]

Hey @Hadiya Coppedge, congrats on the solid investment!

I love this especially because it's a townhome. Clients often stray away from condos/townhomes, but with the right mindset and due diligence on the HOA/its rental restrictions, they're absolutely great house hacks. Affordable too.

Best of luck with the rest of your portfolio!