Home/House Hack/Short term rental property

[Chris Mooney]

Investment Info:

Single-family residence other investment.

Purchase price: $324,500
Cash invested: $15,000

Purchased as a residence. 3 bdrm 1.5 bath. Semi-finished basement that will be put on Airbnb. All profits will be reinvested to continue renovating the basement until it can be converted into an ancillary living unit. At that point, I'll move down there & house hack.

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

I've lived in NYC for 8 years, moved 8 times. Had to move again, decided to purchase a home. This split level ranch property offered the opportunity to offset renovation costs by listing the semi-finished basement as a short term vacation rental. It also has potential to become a house hack situation once the basement is fully renovated (new laminate flooring, separate entrance built in, and half bath made into a full bath).

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

Found it on Zillow. Didn't negotiate it. We were stuck between a rock and a hard place. We had to move out asap and bought in a fairly hot market.

How did you finance this deal?

VA Loan, no money down. Closing costs were about $15K.

What was the outcome?

We moved in a week ago. Now learning how to swing a hammer. Changing doorknobs has been more annoying than expected!

Lessons learned? Challenges?

I have to analyze deals better and negotiate more. I want my next investment to be based on numbers, not emotion. Also, I won't use an agent who is also the seller's agent. The potential conflict of interest made the process seem tainted.