The Bluffs Hack, A WIN-WIN

[Joshua Kemp]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $130,000
Cash invested: $35,000
Sale price: $165,000

3/2 home house hack with modified house hack/nanny option

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

My fiancé came up with the creative idea to house hack this house with a local college student as a “nanny” for our daughter. She basically is responsible for taking her to school in the mornings and, in turn, gets a discounted room in a nice neighborhood! Win-Win!

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

My fiancé and I decided to do the house hack in the first year of owning our home. Truthfully, I was hesitant about the situation because I was afraid of having my daughter taken to school in the morning by a stranger. But we treated it as a business deal and “another tenant” for our home, did background checks, interviews and checked references. It’s worked out great.

How did you finance this deal?

We financed the home originally through a conventional loan with a local bank.

How did you add value to the deal?

We had replaced the carpet in our nanny’s room with tile in that room. Repainted and did new trim in that room prior to marketing the room.

What was the outcome?

Well, I would say it was a very successful outcome. Our Bluff’s Hack has been paid off in two years. We now own this property free and clear.

Lessons learned? Challenges?

The road was not without bumps, though. We learned more than we ever want to know about FEMA flood insurance, and the costly price of not doing due diligence on flood insurance premiums in certain areas.