Live-in-Flip / House Hacking / ADU Build

[David Maldonado]

Investment Info:

Single-family residence buy & hold investment in Santa Maria.

Purchase price: $455,000
Cash invested: $7,000

House Hacking Owner Occupied * In- Progress *Asking Price: 459,999 Rehab: $5000
VA Loan 0% Dow* SELLER PAID CLOSING COSTS AND $15K IN REPAIRS, NO MONEY DWN
RENT BY THE ROOM STRATEGY
PITI: $3060
Rent: $3500 ($875 per room, utilities, Wi-Fi, and Security System)
* Current Project: 300 SQFT ADU *

ADU Rent Estimate: $1800 (Includes Utilities, Wi-Fi, Security System, and private entrance, yard, and parking)Construction Budget: $20k Structure is already existing, more of a conversion

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

It was odd that this property was sitting on the market for 30 days when the average listing accepts an offer within a few days (EVEN WITH HIGH RATES!)

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

Zillow, I provided a list of all the work and cost that needed to be done to the house.

How did you finance this deal?

VA Loan

How did you add value to the deal?

In progress

What was the outcome?

Living for free (rent by the room strategy) and saving capital to build a LARGE detached 1200 sq ft ADU 4bed 4 bath in the backyard.

Current ADU build will be converted into a JADU in accordance with the (I will be adding another bedroom to increase the rent from $1800 to $2200).

Lessons learned? Challenges?

A good way to find deals (as a little guy) in an expensive and highly competitive market, is to look at the properties that have been sitting on the market the longest. Higher probability of negotiating.

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

Worked with an Agent. Everything else I did myself. I'm a construction enthusiast and love everything about construction and learned how to build just by practicing on my own properties and pulling permits as an owner builder.