Unknown House Hack Yields Great Returns!

[Matthew Shaw]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $498,000
Cash invested: $80,000
Sale price: $725,000

House Hack. Did major upgrades to lot and remodeled 1 bathroom. 1st 2 years only cost me $200/month to live in house due to roommates rent.

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

It was my first home purchase and I needed to have roommates to afford the mortgage. I didnt know I was. house hacking at the time.

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

MLS. Originally lost the deal to another buyer. When they feel through, I got the property at $3k below ask due to repairs deemed necessary by inspector.

How did you finance this deal?

Traditional financing with federal tax credit. Borrowed part of down payment from hard money lender. Lender was paid out upon sale.

How did you add value to the deal?

100% remodel of lot. New front and rear yards, as well as outdoor kitchen and patio, RV parking and storage. Personally installed tankless water heater, water softener and high efficiency HVAC system.

What was the outcome?

Sold at a $250k profit after hard money lender was paid out

Lessons learned? Challenges?

I would have loved to have held this property and rented it out, but all the calculators pointed at only $125 of cashflow per month. Market was high, so I decided to sell. It is hard to live with roommates when you own the house, but all the things I noticed as issues with the home (wood floors scratched, kitchen granite stained, etc.) never even came up in the sale. I had 11 offers and sold for $30k over ask.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If you are selling in the OC area, you have to use Edie Israel as your listing agent. Her team was amazing, they got me way over ask, and every vendor they recommended was incredible and passionate about their career.