House Hack, Improve, Refi, Rent

[Sterling Granger]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $525,000
Cash invested: $20,000

The first home my wife and I bought, which at the time people thought was too hight to purchase at. Like real estate does in an exceptional location, the home has appreciated an incredible amount. We never plan to sell, but if we ever need do then it will have served us well. From 2017-2021, we house hacked a room in AirBnB to cover costs of my DIY improvements to the home. We refinanced a couple times to get us in a good position to rent and free us up for our next purchase.

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

Home Value Appreciation

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

Found off-market via a discount brokerage.

How did you finance this deal?

Conventional Loan Financing (including Refinances)

How did you add value to the deal?

Updated Kitchen and bathrooms by keeping it simple - new cabinets, resurfacing tile, & adding new hardware. New flooring throughout. Retrofitted new windows. Painted the interior & exterior. Refreshed the landscaping.

What was the outcome?

Home value appreciation of nearly $275,000. Decent cashflow of $400/mo.

Lessons learned? Challenges?

Keep updated simple. Utilize your network or own skills to keep progress and costs low. Utilize professionals for the larger job. House hack a room or two to cover your costs of updating over time.

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

I was the real estate agent on this, so yes, I would recommend myself to other ;-)