First House Hack Deal, Now Dedicated Rental Property

[Mahad Fahieh]

Investment Info:

Single-family residence buy & hold investment in Denver.

Purchase price: $265,000
Cash invested: $40,000

My first house hack deal. Bought in July of 2016 and added a roommate shortly after move in. Finished basement, moved additional roommate into the basement. Eventually moved out completely and rented the other remaining room out. All rooms are being leased separately. I'm cash-flowing approximately $1100 on this deal.

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

Great location at a reasonable price given Denver market with plenty of room and potential value to add (basement finish project).

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

On MLS through my realtor.

How did you finance this deal?

VA loan (conventional financing)

How did you add value to the deal?

Finished the basement (with full bathroom, bedroom and egress window). Also, redid flooring on the main floor.

What was the outcome?

Successful rental property that is now a dedicated rental.

Lessons learned? Challenges?

Many lessons learned haha. Get a lawyer to draft up a solid lease (strictly outlining responsibilities, fees, in case of damages, etc.) and consider doing a month to month or short term lease agreement. Hire legit contractors (preferably bigger firms). Find a good handyman/women before things break. Don't include utilities in rent cost. And many more.