Primary Residence House Hack

[Kyler Schroeder]

Investment Info:

Single-family residence other investment.

Purchase price: $100,000

Cash invested: $32,000

Sale price: $175,500

This started out as my primary residence - I originally put down $17,000, the extra cash invested was primarily making modifications for wheelchair access. In late 2017 I moved back to my home town and rented the house out for a little over a year while I decided where to live permanently. I sold the house in early 2019.

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

This worked out perfectly as I wasn't sure where I wanted to reside permanently and the homes on either side of my house were rentals with the same property manager. I have always been interested in rental income but had never been in the right situation to make it happen. I figured this is about the best way to get started.

What was the outcome?

The outcome was great, the property cash flowed around $500 a month and the eventual sale price was +$75,000 of the original purchase price.

Lessons learned? Challenges?

Make sure you have a property manager with good communication, my property didn't need much attention but on the occasions it did, it was difficult to make sure everything was properly and timely taken care of. For the sale of the home, my property manager also acted as my Realtor which I now see may have been a mistake. It's not that he did a bad job per se, but I don't feel he put enough time into marketing my property. Be sure to hire a full time Realtor.