House Hack - Timed perfectly

[Matt Pursley]

Investment Info:

Single-family residence other investment.

Purchase price: $240,000
Cash invested: $45,000
Sale price: $392,000

This was a house hack. 5% down, major kitchen remodel, light bath remodels, paint and landscaping. Sold just after the 2 year capital gains rule. Worked out perfect.

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

Primary residences have great benefits. If I could go back in time i wouldve bought a 4-plex as an 18 year old. Take advantage of primary residences benefits while also remodeling and enjoying your upgrades.

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

This house was for rent. i called the landlord and told them i wanted to buy it. Made and offer, negotiated and came to terms.

How did you finance this deal?

This was our cash. 5% down payment with the rest of our cash going toward remodels.

How did you add value to the deal?

We remodeled the kitchen and landscaping, light bathroom remodels, paint, and fixtures. We also benefited from the explosive housing market of the past 2 years.

What was the outcome?

Sold for cash $392k from an asking price of $350k. Total profits of this house about $120k

Lessons learned? Challenges?

If you are going to do a house hack, do the remodels on a schedule. We didnt quite finish everything by the time it was time to sell and weren't quite prepared. We had to scramble to get some stuff done.