Successful House Hack in the PNW

[Jodi Low]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $513,000
Cash invested: $300,000

Bought a .56 acre property with main house and ADU for STR. Cosmetic updates and reconfigured/expanded the bathroom in the ADU. Updated main house roof, furnace, water heater and added AC. Improved landscaping and hardscape to provide beauty and privacy. Cash flow is covering the mortgage, insurance, and utilities for the whole property! What's next?

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

We wanted a house hack situation with the ability to force appreciation and generate cash flow. Plus the property offered personal satisfaction for gardening and proximity to W9 jobs.

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

Worked with local realtor. Offer included a large down, no contingencies and 45 day close so owner could relocate.

How did you finance this deal?

Cash and traditional financing at all time low rate.

How did you add value to the deal?

Updated and refreshed the ADU (new paint, flooring mostly plus reconfigured by removing coat closet and pantry (not needed for a STR) which created larger bathroom and better flow.

What was the outcome?

Outstanding first year income which covered expenses on the entire property; mortgage, insurance, prop. tax, and utilities. Second year, slight slower so far - but the high season is yet to come, so fingers crossed for equal or better revenues.

Lessons learned? Challenges?

Would not have put so much down, rather bought two properties while interest rates were low. Look closer at age of furnace, water heater and have a roof and fire place inspection so that we could have planned better for their replacement.

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

Yes, reach out and I would be happy to share.