3rd Deal: House Hacking with 6 beds

[Sean Tabor]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $4,000
Sale price: $10,000

First House Hack: 6 BR 2.5 Bath (Semi-Duplex). Rented all spare rooms for $300/mo.

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

I wanted a bigger house. I got this idea in my head that I could rent spare rooms for more than my payment.

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

MLS during recession, out of state investor off-loading bad investment decisions.

How did you finance this deal?

Private Money

How did you add value to the deal?

Updated furnace and HWH, painted throughout.

What was the outcome?

Pseudo-Disaster. The house worked very well, I took the shabbiest bedroom and fixed the rest of the house up as I could. Big houses come with big bills. Put a new roof on the back half of the house which took care of all my leaks. Heat bill was outrageous and after my 2nd winter I decided to sell the house to prepare for my marriage.

Lessons learned? Challenges?

Understand why the seller is selling, and make sure you can handle the challenges they couldn't. Thank goodness I didn't "Technically" lose money on it, but I bit off a little more than I could chew at the time. Now that I have some more experience and access to capital, I'd like to revisit that property!