Boise House hack creating long term wealth and $550k value add.

[Zach Matson]

Investment Info:

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

Purchase price: $165,000
Cash invested: $50,000

4 bedroom home with a 1 bedroom apartment attached. Originally bought as a house hack. Currently live in and work out of, but will be moving out this year and renting both units as short term rentals.

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

I bought this as a house hack in 2015 when the rent on the apartment would pay a huge chunk of my mortgate, with great cash flow once I would move out of the main house.

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

Found on the local MLS with my agent. There was some back and forth, but I eventually paid full price, which was still a deal back then, and turned out to be an amazing deal long term.

How did you finance this deal?

Conventional loan with 5% down.

How did you add value to the deal?

Changed the layout of the main house to be more functional, as well as add a bathroom. Full remodel of main house and apartment. Added hot tub.

What was the outcome?

I originally intended on moving out after 2 years, but I got into real estate full time and this took a back seat and still live here. But, renovations will be complete this year and both the house and apartment will be rented out as short term rentals for massive cash flow. Have also added $550k + in equity from a combination of market appreciation over time and renovations.

Lessons learned? Challenges?

When I started investing full time this took a backseat to everything else I was doing and I was less motivated to work on it myself.