House hack in the city center of Barcelona, Spain

[Erwin Groenendijk]

Investment Info:

Single-family residence other investment in Barcelona.

Purchase price: $325,000
Cash invested: $80,000

House hacking vacation rental project in the city center of Barcelona, Spain next to the famous 'Ramblas' and 'Plaza Catalunya.'

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

The apartment was renovated from 1 apartment to 2 studios, one exterior of 30m2 with private balcony and the other interior one of 40m2. The property had been on the market for more than a year and had been offered to all the big agencies in the city, but no one showed interest. The inside decoration was a mess, it was smelling, it had nothing to be attractive. However, the split of the apartment had already been done and after extensive research, it turned out that vacation rental was possible.

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

Working as a RE agent at Lucas Fox International Properties in Barcelona, Spain in 2019, I was visiting this apartment with a Chinese investor right in the city center next to the famous 'Ramblas.' Upon entering the apartment and explaining to them the apartment's characteristics, they were not excited at all. Their response: 'No, we are not interested, get us out of here as soon as possible.' Although we did just that, in my mind I could only see the huge potential the apartment had to offer.

How did you finance this deal?

Regular bank financing.

How did you add value to the deal?

We bought it, cleaned it, renovated it just a bit, bought complete new furniture, and set it up as a tourist vacation rental.

What was the outcome?

From the average 3000 euros we are earning per month on the studio, this house hack vacation rental is paying our mortgage of 1000 euros and other related costs/expenses/etc. of 100/200 euros. We are living there for free and even making a fair amount of profit on it.

Are you looking to spend some time in the beautiful city of Barcelona? Reach out to us!

Lessons learned? Challenges?

In Barcelona, no tourist licenses are being granted to homeowners anymore, BUT short term tourist rental is still possible if you are living in the apartment yourself and you are renting out a room. Now, although there are 2 separate studios, in the registers of the municipality the apartment is still appearing as 1, and the exterior studio could be rented as a 'room' via platforms like Airbnb.

Did you work

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

The mortgage brokers that helped us along the way. You need to pay for them, but they deliver a lot of value.