My first house-hack (Denver, CO)

[Rick Novotny]

Investment Info:

Single-family residence other investment in Northglenn.

Purchase price: $298,000
Cash invested: $18,000
Sale price: $345,000

HOUSE-HACK!

Lived in this property for 2 years, rent-free, then cash flowed $300 per month for an additional year because I learned managing tenants was not my style. Sold it in April 2019 and walked away with 45k. Initial investment ~$18,000.

Homerun of a first deal. All of my deals since this have been long distance with property managers doing the day-to-day operations.

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

It was close to my office.

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

MLS

How did you finance this deal?

FHA Loan - Used savings for downpayment.

How did you add value to the deal?

Rented by the room

What was the outcome?

Free living for 2 years, $300 per month cashflow for an additional year. Basically tripled my investment in 3 years.

Lessons learned? Challenges?

I will always use property management in my business from now on!

Dealing with tenant's problems and excuses for not paying rent is not for me because I am too nice. I need to be disconnected from the people living in my properties.