House Hacking in Denver Metro

[Jordan Lindsay]

Investment Info:

Single-family residence other investment.

Purchase price: $485,000
Cash invested: $14,500

Single Family Home with 5 bedrooms and 3 bathrooms in Northglenn CO

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

My friend and I have been listening to the Denver RE Investing podcast for years. After he bought his first House Hack in 2019, my wife and I decided we wanted to go the same route.
This house offered a decent layout where we had a large master bedroom with en-suite bathroom and an office upstairs, while we rented out 3 bedrooms downstairs.

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

This was on the MLS and we found a Realtor® through Your Castle Real Estate to help us in the process. There wasn't much negotiating, as we were pretty new to this type of business transaction. We did get the furnace replaced before closing, which helped a ton.

How did you finance this deal?

We put 5% down on a 2.75% interest rate conventional loan, with $17,500 in grant credits through Bank of America. This allowed us to invest under $15,000 to acquire the property!

How did you add value to the deal?

We had to do all the typical cosmetic renovations: painting, carpets, and landscaping. We then furnished all the shared spaces and prepared the bedrooms with curtains and a new egress window in one.

What was the outcome?

We lived in this house for just over 12 months before moving into our second (current) HH. The house now cash flows $1,700 before utilities.

Lessons learned? Challenges?

We still have a lot to learn, and are dealing with vacancies in this area this winter, but are extremely satisfied with this property! We learned some valuable lessons in tenant screening and protecting ourselves as landlords, already, so I think we'll see some major improvements to our management and stress levels in 2023.