5 bed, 2 bath Single Family Home House Hack in CO!

[Kenny Smith]

Investment Info:

5 bed, 2 bath Single Family Home in Westminster, CO bought in December 2021.

Purchase price: $505,000
Cash invested: $63,000

House hack! We converted this single family home into a quasi duplex. Separating the downstairs from the upstairs (door connecting both units to ensure it is not considered an ADU or duplex). We live in the upstairs and airbnb the basement.

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

Our strategy has been to buy 1 of these every year and live in it, so we can take out an owner occupied loan vs. an investment loan.  We are able to scale at a rapid pace and we want to do now before we start having kids.

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

MLS, self represented as I am an agent.

How did you finance this deal?

5% conventional loan, with 2.8% (realtor commission) towards closing costs and remaining back at closing

How did you add value to the deal?

We added a second kitchen in the basement, a few cosmetic items, new landscaping, central a/c, new electrical panel to accommodate the extra kitchen, and ran additional laundry upstairs.

What was the outcome?

Living for free upstairs, and cash flow during the busy months!  If you include the unit we live in, projected cash flow moving out will be $3k per month.

Lessons learned? Challenges?

Be creative!  The market always has opportunities, you just need to know where to look to find them.  Work with the right people that specialize in what you are trying to do!