House Hacking/Rehab/Adding an ADU

[Nella DiBenedetto]

Investment Info:

Single-family residence buy & hold investment in Bend.

Purchase price: $455,000
Cash invested: $45,000

Bought this home for $45k under asking, knowing the house was on the market for 60 days already, the seller was distressed, the house was cosmetically not appealing (ripped up flooring from water damage, grime and dust everywhere, not well maintained, three dogs and four kids living there), and the high interest rates/the market was scaring the seller. I bought it as my primary, came in and fixed it up for $20k, and rented out two of the rooms. My plan is to convert the one car garage into a large studio ADU and add a shed in the yard for storage. The garage as it is currently, isn't big enough for a car and storage at the moment, so we are just using it as a storage unit. Currently I am out of pocket $350/month on my mortgage. Once I complete the garage, I will be cash flowing around $1200-1500.

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

I saw the potential with how distressed the home was (C house) in the PERFECT location (A neighborhood). The home is walking distance to breweries, restaurants, music venues, the river, etc. The house had been on the market for over 60 days, the seller was distressed and the market was turning "for the worst". Everything was in my favor to ask below asking price. I was excited to rehab the property and eventually add an ADU for extra income!

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Rehabbing and eventually adding an ADU