Another House Hack

[Ryan Thomson]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $650,000
Cash invested: $30,000

House Hack! Purchased this single family home listed on the market for 650k. An amazing price for the location and 3,500 square feet. I negotiated 70k of concessions. I used those concessions to build out the basement into a beautiful and modern short term rental. We built a kitchen, three bedrooms, and two bathrooms. It will pay for almost all of the mortgage. If not, I can rent any of the remaining three bedrooms upstairs for $700 each. For now I want my own space!

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

Big fan of House Hacking

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

Found it on the market. Inspection came back with some concerns and I leveraged those for 70k of concessions.

How did you finance this deal?

Conventional 5% down.

How did you add value to the deal?

Converted 1500 sq ft of unfinished basement into an integrated ADU with a full kitchen, three bedrooms, and two bathrooms.

What was the outcome?

Amazing STR in the basement that will cover the mortgage.

Lessons learned? Challenges?

Be really really clear with contractors.

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

I was the agent and the buyer on this deal.