Successful Value Add House-Hack

[Jacob A Clark]

Investment Info:

Single-family residence buy & hold investment in Nashville.

Purchase price: $499,999
Cash invested: $15,000

House hack! Added a bedroom, walk in closet, and full bathroom. Finished out the basement and currently renting by the room. Saw an opportunity to turn the house into a 4bed 3.5 bath.

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

Decrease cost of living and low money down.

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

Sent offer before it hit the market. Negotiated seller concessions to offset closing costs.

How did you finance this deal?

5% owner occupied loan.

How did you add value to the deal?

Added a bedroom, walk in closet, and full bathroom to finish out the basement. 

What was the outcome?

Living for free and getting paid a small amount every month to do so!

Lessons learned? Challenges?

Renting by the room can be more challenging then renting out an entire unit. Have to be mindful of the other tenants, since their are shared spaces. Need to make sure everyone is on the same page. 
Live in the smallest bedroom and rent out the larger bedrooms for more. 

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

I represented myself in the transaction, but yes, Jackie Hurtis at Interlinc Mortgage and her team are awesome. They helped finance the deal and got it closed smoothly and on time.