First PadSplit Investment Property

[Jean Brune]

Investment Info:

Single-family residence buy & hold investment.

6 unit PadSplit

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

I had been living in a PadSplit and was able to save enough to buy a property so I bought this one and house hacked it as a 4/2 using the PadSplit platform. Then, I turned into a 6/2 and bought a condo for me to live in.

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

MLS
Opendoor

How did you finance this deal?

FHA

How did you add value to the deal?

It was fully renovated when I bought it.
I added value by adding income-producing rooms.

What was the outcome?

Netting nearly $2k/month.

Lessons learned? Challenges?

PadSplit is not as hard as people say or claim. Always get permits for conversions and be cognizant of the experience renters will have in your home. Adding rooms does create the potential for more conflict but carefully thought-out floorplans, designate wet and dry storage spaces, and provide supplies. Make sure you have a process in place for responding to comms efficiently and resolving issues among members and issues with the house as quickly as possible.

It's worth the income and the feel-good feels knowing you're helping out your community. 

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

Yes - Josh Stanton