Rent by the Room

[Donald Eggers]

Investment Info:

Single-family residence buy & hold investment in Redmond.

Purchase price: $376,000
Cash invested: $20,000

House hack owner-occupied investment turned to long-term hold.

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

The most conservative way to break into the investing market.

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

I bought it from a new home builder I worked for in a market I could afford.

How did you finance this deal?

Owner occupied 5% down conventional loan.

How did you add value to the deal?

I added a 5th bedroom to a 4 bedroom 3 bath house.

What was the outcome?

I lived here for 2 years before buying my second house and rented out each of the rooms. Each secondary room (4) is $850/mo and the primary room is $1,050/mo totaling in $4,450 in gross rents.

Lessons learned? Challenges?

House hack/rent by the room is best with a high bedroom and bathroom count.
I make sure that there is 1 bathroom per 2 tenants/rooms.

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

Kip Pierson with Northwestern Home Loans in Central Oregon
Hayden Homes in Central Oregon